What is a bridge loan and who is it for?
A bridge loan is short-term financing that lets a homeowner buy a new residence before the existing home has sold, repaid from the proceeds when the departing residence sells. Mortgage Go originates bridge loans through licensed loan officers in the states where each officer is individually licensed.
Who it's for
Homeowners purchasing a new residence before their existing home has sold, who need short-term financing tied to the equity in the departing home.
Who it's not for
Borrowers who don't have an existing home to leverage, or who can sequence the sale before the purchase.
Benefits
- Short-term financing tied to the equity in your departing residence.
- Lets you buy before you sell.
- Designed to be repaid when the departing residence sells.
- Avoids contingencies that weaken a purchase offer.
Key facts
- Term
- Short-term — typically months, not years
- Collateral
- Departing residence and/or new home
- Payoff
- From sale of departing residence
- Maximum loan-to-value
- Placeholder — pending compliance
Calculator
Bridge Loan calculator embeds here in Phase 2.
Frequently asked questions
What is a bridge loan?+
A bridge loan is short-term financing that lets a homeowner purchase a new residence before their existing home has sold, using the equity in the departing residence as part of the collateral.
How is a bridge loan repaid?+
A bridge loan is typically repaid from the proceeds when the departing residence sells. Specific structure and timing depend on the lender's program.