Who Offers Bridge Loans? Tips for Sellers Who Want to Buy, Then Sell

Published on April 23rd, 2025
7 min read

Richard Haddad Executive Editor
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Richard Haddad Executive Editor

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Richard Haddad is the executive editor of HomeLight.com. He works with an experienced content team that oversees the company’s blog featuring in-depth articles about the home buying and selling process, homeownership news, home care and design tips, and related real estate trends. Previously, he served as an editor and content producer for World Company, Gannett, and Western News & Info, where he also served as news director and director of internet operations.

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If you’re a homeowner ready to move, you may have good reasons for wanting to buy your next house before selling your current home. Perhaps your property isn’t selling as fast as you hoped, but you need to relocate. Or maybe you’ve found your dream house and want to make an offer before someone else takes it.

A bridge loan can help with this buy-sell timing conundrum. Bridge loans offer temporary financing that allows sellers like you to buy a new home before selling your old one. In this guide, we’ll explore who offers bridge loans, how they benefit sellers, and alternative solutions that can offer even greater flexibility.

Who offers bridge loans?

Bridge loans are offered by many different kinds of financial institutions, both large and small, national and local. Here’s where you might find one:

Banks and credit unions: Many large banks and regional credit unions offer bridge loans.
Mortgage lenders: Some lenders who offer traditional mortgages also provide bridge loans, depending on the product mix and state regulations.
Private lenders: These lenders may offer more flexible terms and faster approvals, but tend to charge higher interest rates and fees.

The cost and approved amount of these loans will vary based on factors such as home equity levels and credit scores, debt-to-income ratios, and preexisting borrowing relationships.

Some major banks, such as JPMorgan Chase, do not offer traditional bridge loans to homeowners. Other big-name lenders like Bank of America may offer alternative financing options like HELOCs (Home Equity Lines of Credit), but limit their bridge loan programs to specific purchases, such as yacht financing.

Investors have additional bridge loan options

If you’re an investor, a simple Google search such as “real estate investment bridge loans near me” will reveal a plethora of local options, including hard money lenders, groups that are less concerned with a borrower’s credit score and more focused on the value of the property used as collateral.

However, for the purposes of this post, let’s turn our attention once again to you, a homeowner who is considering a bridge loan to help you buy a new house before selling your current home. As we’ve established, not all lenders offer bridge loans, and terms can differ significantly.

Before committing to a traditional bridge loan, compare your options carefully, including alternative modern bridge financing solutions, which we’ll cover in a minute.

How can a bridge loan help sellers looking to buy?

For sellers who need or desire to buy before they sell, a bridge loan can fill a crucial financial gap. Here’s how:

Unlocks equity early: A bridge loan allows you to tap into the equity in your current home to use as a down payment for your next property, before your current home is sold.
Helps avoid contingent offers: In competitive markets, making an offer that’s contingent on selling your existing home can put you at a disadvantage, especially in the current slower housing market. A bridge loan allows you to make stronger, non-contingent offers.
Provides flexibility for moving: With a bridge loan, you can purchase and move into your new home first, reducing the stress of back-to-back closings or finding (and paying for) temporary housing.

As good as these benefits seem, bridge loans aren’t your only option. Many homeowners who feel stuck are turning to buy-first solutions known as “buy before you sell” programs. These programs can streamline and simplify your move, helping you break free of the buy-sell conundrum.

What’s your current home worth? As you make plans to buy a new home, get a value estimate on your current house from HomeLight. Our free tool analyzes records of recently sold homes near you, your home’s last sale price, and other market trends to provide a preliminary range of value in under two minutes.

What is a buy before you sell program?

A buy before you sell program is designed to help you purchase your next property before selling your current one, without the need for a traditional bridge loan.

These programs assess the value of your current home and front you a portion of the equity. This way, you can make a strong, non-contingent offer on your next home while still preparing your current property for the market.

With these innovative solutions, you gain a convenient way to move at your own pace, guided by experienced professionals who help manage both the buying and selling process.

How does HomeLight Buy Before You Sell work?

HomeLight’s Buy Before You Sell program provides a seamless path for sellers who want to purchase their next home without waiting for their current property to sell.

Here’s how it works:

If your current home doesn’t sell within 120 days of purchasing your new home, HomeLight will buy your house and continue to work with you to sell it. With this Home Sale Guarantee, any profits from the sale (after deducting HomeLight’s incurred costs) will be distributed to you after the property sells on the open market.

This approach can give you peace of mind, knowing you don’t have to rush your sale or settle for a lower price just to move forward.

What are the benefits of using a BBYS program?

For many sellers, a buy before you sell (BBYS) program like HomeLight’s offers key advantages over a traditional bridge loan:

Flexible timelines: There is no need to perfectly time your sale and purchase dates of your move. You’ll have welcome breathing room to plan without feeling pressured or rushed into a deal.
Less financial stress: HomeLight Buy Before You Sell can remove the worry of potential double mortgage payments or having to dip into savings to bridge the gap between homes.
Stronger buying power: In a competitive or low-inventory market, a non-contingent offer can stand out and grab the seller’s attention, increasing your chances of winning the home you want.
More potential earnings: After you move, you can list your old house unoccupied and even staged, which can lead to more sale proceeds.
Simplified process and certainty: HomeLight coordinates the entire process, from providing the equity advance to helping list and sell your current home, reducing the logistical complexity and providing more certainty during a life-changing time.

Ask a top agent about a BBYS solution

Every seller’s situation is unique. If you’re unsure whether a traditional bridge loan or a buy before you sell program is the better fit, consult with a top-rated local real estate agent. A seasoned agent familiar with bridge loans and BBYS solutions can guide you toward the best route based on your circumstances and selling timeline.

HomeLight can connect you with a trusted agent in your area to discuss whether the Buy Before You Sell program is right for you. You can also get started at homelight.com/buy-before-you-sell.

With the right support, you can move forward with confidence and make your next home purchase a reality.

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At HomeLight, our vision is a world where every real estate transaction is simple, certain, and satisfying. Therefore, we promote strict editorial integrity in each of our posts.

Richard Haddad

Executive Editor

Richard Haddad is the executive editor of HomeLight.com. He works with an experienced content team that oversees the company’s blog featuring in-depth articles about the home buying and selling process, homeownership news, home care and design tips, and related real estate trends. Previously, he served as an editor and content producer for World Company, Gannett, and Western News & Info, where he also served as news director and director of internet operations.