Also known as a swing loan, a bridge loan is a short-term financing solution designed to “bridge the gap” between the sale of your current home and the purchase of a new one.

If you’ve found your dream home but haven’t sold your current property yet, a bridge loan can give you the funds needed—usually for a down payment or closing costs—so you can move forward with confidence.

How Does a Bridge Loan Work?

Bridge loans typically span 6 to 12 months and are intended to be repaid once your current home sells. During this transition, you may only need to make interest-only payments, easing your financial burden until long-term financing or proceeds from your home sale come through.

A major advantage of bridge loans is that they allow you to make a non-contingent offer on your next home—meaning you don’t have to wait for your existing home to sell first. This can give you a strong edge in competitive markets.

Who Is a Bridge Loan For?

Bridge loans are a great fit for:

• Homeowners relocating quickly

• Buyers taking advantage of hot market opportunities

• Those needing immediate funds before selling their current property

Pros and Cons of Bridge Loans

✅ Benefits:

• Quick Access to Funds
  Use it for a down payment, closing costs, or immediate purchase needs.

• Payment Flexibility
  Interest-only options reduce your monthly burden during the transition.

• Faster Approval Process
  Compared to traditional loans, bridge loans often close more quickly.

• Stronger Offers
  Make non-contingent offers without waiting for your home to sell.

⚠️ Things to Consider:

• Higher Interest Rates
  Since they’re short-term and higher risk, bridge loans may come with elevated interest rates.

• Short Repayment Terms
  You’ll typically need to repay the loan within a year—so timing matters.

• Requires Equity
  Lenders may require substantial equity in your current home to qualify.

Is a Bridge Loan Right for You?

Bridge loans can be a smart, strategic tool when timing is tight. But like any financial decision, it’s important to weigh the pros and cons based on your unique situation.

At Trust Home Loans, we’ll help you understand your options and guide you through the process—so you can move from one home to the next without unnecessary stress.