Bridge loans

What is a bridge loan?

A bridge loan is short-term financing that may help provide purchase funds before another property sells. For a homeowner moving to a new primary residence, it may unlock eligible equity in the current home. It is a loan that must be repaid, rather than an advance on guaranteed sale proceeds.

Who may qualify?

Lenders evaluate available equity, existing liens, credit, repayment capacity, the new purchase, and a credible plan to repay the bridge loan. Program terms differ. Your new mortgage lender also must accept the source of funds and evaluate the resulting obligations.

For Fannie Mae financing, the lender must document the ability to carry the current home, new home, bridge loan, and other obligations. Its bridge-loan rules also restrict cross-collateralizing against the new property.

Plan for more than the ideal closing date

Review the term, fees, interest, required payments, payoff deadline, and extension provisions. Ask what happens if the sale is delayed or the home sells for less than expected.

Hypothetical budget: if the two homes and bridge loan together cost $5,500 per month, a three-month overlap requires $16,500 for those payments alone. Moving, repairs, selling costs, and loan fees are additional. This is a cash-planning example, not a loan offer.

Compare the alternatives

Available savings, coordinated closings, a sale contingency, or selling first may also work. Discuss contract timing with your Realtor and financing with our team before making an offer. See our buying before selling guide for a broader comparison.

References and related guides

• Fannie Mae: bridge/swing loans ↗

External guidance describes specific programs or general requirements; it does not confirm availability through our team. Reviewed October 20, 2026.

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