ServicesBridge Loans
Bridge Loans in Bartlett, TX
A bridge loan uses the equity in the property you already own to fund the down payment on the next one, so you can buy before you sell. We size it carefully, test the payoff plan first, and tell you plainly when a bridge isn't the safer choice.
How a Bridge Loan Works and Who It Suits
A bridge loan is a short-term loan backed by the property you intend to sell. It lets you use that equity today, most often to cover the down payment and closing costs on the place you are buying. Once the old property sells, the proceeds repay the bridge.
It suits a narrow set of circumstances: you have found the place you want, the seller will not wait on a contingent offer, and the property you own has solid equity and should sell within a reasonable stretch. It does not suit thin equity or an uncertain sale. There, two loans at once can turn a good move into a hard one.
So we look at risk before we look at speed. Ahead of any signature, we work out what happens if the sale drags on longer than planned, and we confirm you can keep up both payments through that period.
What Our Bridge Loan Work Includes
- An equity review of the property you're selling
- We estimate what the current property is likely to bring, subtract the existing mortgage and selling costs, and show you the equity you can realistically borrow against. We use conservative numbers, not best-case ones.
- A two-payment stress test
- We run your budget with both loans active for several months longer than you expect the sale to take. If that picture is tight, we say so before you commit.
- Coordination with your purchase loan
- Most bridge loans are paired with a mortgage on the new property, often one of our conventional loans. We structure the two together so the down payment, rate and closing dates line up.
- A written exit plan
- You'll see, in plain terms, how the bridge is repaid, the term it runs, and what your options are if the sale slips. Nothing about the payoff is left vague.
- An honest comparison with alternatives
- Sometimes a HELOC on the current property, a contingent offer or simply selling first is the safer route. We lay those options beside the bridge so you can choose with the full picture.
Signs a Bridge Loan May Be the Right Move
The seller won't take a contingent offer
In a competitive moment, an offer that depends on your sale can lose. A bridge lets you make a non-contingent offer backed by real funds.
Your equity is strong but tied up
You own a property with substantial equity, yet your cash savings won't cover a down payment on their own. The bridge unlocks that equity for a short period.
You want to move once, not twice
Selling first can mean renting, storing furniture and moving again. Buying first lets you relocate straight into the next place and prepare the old one for sale while it's empty.
Your income can carry two payments for a while
A bridge works best when your income comfortably covers both loans during the overlap. If it does, the risk stays manageable.
Your current property should sell steadily
Well-kept properties in active parts of the area, from Georgetown to Temple, tend to draw buyers. A realistic sale timeline is the backbone of a safe bridge.
What Sets the Price of a Bridge Loan
Because a bridge loan is short-term and backed by a property about to be sold, its rate usually runs above a standard mortgage. What you pay overall comes down mainly to how long the loan stays open and how much equity supports it. Before you decide, we give you rate quotes and a full list of costs by phone.
Equity behind the loan
The more equity you hold, the lower the lender's risk and the better the terms tend to be. Borrowing near the maximum usually pushes the cost up.
Length of the bridge
Interest adds up for each month the loan stays open. A quick sale holds the total down, and a drawn-out one raises it.
Upfront fees and appraisal
Origination, the appraisal and title work all add to what you pay at the start. Each one is listed on its own so you know where your money goes.
Credit and income
Good credit and steady income you can document help with pricing and make it easier to qualify for the stretch when both payments are due.
How a Bridge Loan Comes Together
- 1
A first conversation by phone
You tell us about both properties, your timing and your income. A loan officer walks through whether a bridge makes sense and what pre-qualification would look like.
- 2
Numbers on paper
We gather your mortgage statement, income documents and an idea of the sale price. From there we prepare the equity estimate and the two-payment stress test, and go over both with you at our office or by video.
- 3
Application and appraisal
Once you decide to proceed, we take a full loan application. The current property is appraised to confirm its value, and the purchase loan on the new property moves forward alongside it.
- 4
Closing on the new property
The bridge funds at or before your purchase closing, covering the down payment and costs. You'll receive clear disclosures showing the rate, term and payoff terms.
- 5
Payoff at your sale
When the original property sells, the title company pays the bridge from the proceeds. We stay in touch through the sale so there are no surprises at the finish.
Common Questions About Bridge Loans
Will I pay on both properties at the same time?
In most cases, yes, during the overlap. Some bridge loans let you pay interest only or put payments off until the sale, which lightens the load. We show you the actual monthly figures so you know what is coming.
What if my current property takes longer to sell?
We plan for this risk from day one. A bridge loan runs for a fixed term, and if the sale goes long you may have to cut the price, extend the loan where the terms permit, or refinance. The stress test is there to show you can ride out a slow sale without being pushed into a hurried choice.
How large a bridge loan can I get?
That turns on what the property you are selling is worth and what you still owe on it. Lenders usually limit total borrowing to a share of the value so a cushion remains. We work out your number during pre-qualification.
Would a HELOC serve me better than a bridge loan?
It can. A HELOC may cost less if it is opened before the property goes on the market, though many lenders will not open one once a property is listed. Our HELOC page explains that route, and we are happy to weigh the two with you.
Does a bridge loan work for an investment property?
Bridge financing is designed mostly for moving from one primary residence to the next. Investors who need to buy or renovate fast are usually better served by our hard money loans. Share your plan and we will steer you to the right loan.
Plan the Move Before You Make It
A short call is enough to see whether a bridge loan fits your situation and how the payoff would work. We'll talk through your equity, your timing and what a safe overlap looks like.