How to Use a Bridge Loan to Buy a New Home Before Selling

By Homes By Molly Haines Team

With over 50 years of combined experience, the brokers at Homes by Molly Haines offer an unparalleled level of market insight, strategic guidance, and concierge-level service. We are committed to continuous growth—constantly refining our expertise to meet the demands of an ever-evolving real estate landscape.

“How can I buy a new home if my current one hasn’t sold yet?” It’s one of the most common questions homeowners ask when they’re ready to move. You’ve found your dream home, but your current house hasn’t sold yet, and you need that equity to move forward. You don’t have to wait. There’s a financing option that can help you buy your next home before your current one sells: a bridge loan.

What is a bridge loan? This short-term loan, usually lasting up to 12 months, helps you “bridge” the gap between your old house and your new one. It lets you tap into the equity you’ve built in your current home and use it as a down payment on your next property.

Once your existing home sells, you simply use the proceeds from that sale to pay off the bridge loan and move into a standard 30-year fixed mortgage. Most homeowners who’ve owned their property long enough to build up sufficient equity can qualify.

In short, it gives you the freedom to move forward without waiting for your current home to sell first. That flexibility also helps you avoid a common challenge buyers face: having to make a contingent offer.

Why sellers hesitate with contingent offers. When you make an offer to buy a house but still need to sell your current one first, that’s called a contingent offer. In simple terms, your purchase depends on the sale of your home.

Sellers usually don’t love that kind of offer because a lot has to happen before the deal can close. You’d still need to list your home, find a buyer, sign a contract, and wait for the buyer’s loan to be approved. If anything in that process falls apart, the whole deal could collapse.

That’s why sellers tend to go with non-contingent offers, offers that aren’t tied to another sale, since they’re more likely to close smoothly and on time.

How a bridge loan strengthens your offer. Using this type of financing lets you avoid making a contingent offer while still relying on your home’s equity. It makes your offer stronger and more competitive, especially when you’re up against multiple bids.

It can be the difference between missing out and getting the home you truly want.

This short-term loan gives you flexibility and confidence. It helps you use your home’s equity, avoid contingencies, and make a stronger offer, so you can move forward toward the home you’ve been waiting for.

If you need guidance on whether a bridge loan is the right fit for your situation, reach out to (425) 428-6195 or send an email to info@homesbymollyhaines.com. I’ll help you understand your options and take the next step toward buying your new home.