ServicesBridge Loans
Bridge Loans in Sunset Valley
With a bridge loan, the equity sitting in the property you own today becomes the down payment for your next one. You can look, make an offer and close when the right place appears, then clear the bridge once your current property sells.
When a bridge loan is the right fit
Most buyers who move up or across town hold their equity in the place they live. A bridge loan unlocks that equity for a short stretch, usually until the current property sells, so you are not forced to sell first and rent in between, or to write an offer that depends on a sale.
It is a short-term tool, and it costs more than a standard home loan. It makes sense when you have solid equity, a realistic plan to sell, and income that can carry the numbers for a few months. It makes less sense when the sale is uncertain or the budget is tight. We will tell you plainly which side of that line you are on.
From the first conversation to closing, the same loan officer handles your file, coordinates with your agents and the title company, and keeps both transactions in view.
What we handle on a bridge loan
- 01
An equity review of the property you own
We look at what you owe, what the property is likely worth and how much can sensibly be borrowed against it. That number sets everything else.
- 02
Pairing the bridge with your purchase loan
The bridge usually covers the down payment and closing costs, while a separate home loan covers the rest of the purchase. We structure both together so the payments, dates and figures line up, whether that second loan is conventional or another program.
- 03
A two-payment budget, in writing
Before you commit, you see what carrying both properties looks like month by month, including any interest-only period. No guessing at what the first few months will cost.
- 04
An exit plan
We talk through listing timing, a realistic sale window and what happens if the sale takes longer. The payoff should be planned before the loan starts, not after.
- 05
Coordination with agents and title
Your listing agent, buying agent and title company hear from one person. Closing dates, payoff figures and document requests stay in one place.
Questions about Bridge Loans?
Call(512) 746-0139Signs a bridge loan may solve your timing problem
You found the right place before listing yours
The next property is on the market now, while the one you own still needs time before it can be sold. A bridge covers that gap.
Sellers keep passing on contingent offers
An offer tied to the sale of your current property can lose to one with no strings. With the down payment already in hand, your offer stands on its own.
Your equity is high but your savings are not
Many borrowers hold substantial value in the property they own and keep only modest cash in the bank. A bridge converts part of that equity into funds you can use.
You want to move once, not twice
Selling before you buy can mean renting for a few months, paying for storage and packing up again. Buying first gives you time to settle in and then list a vacant property without pressure.
Your income can carry two payments for a while
If your budget holds up through a few months of overlap, a bridge loan deserves a careful look.
How a bridge loan comes together
- 1
Pre-qualification by phone
The first conversation covers both properties, your income, your credit and the timing you have in mind. By the end you have a sense of what you may qualify for and whether a bridge suits your move.
- 2
Application and valuation
We take your loan application together over the phone, gather your documents, and the property you own is valued to confirm how much equity is available. Each request comes with an explanation of why we need it.
- 3
Structure and written terms
You see the bridge and the purchase loan laid out together: rate, term, fees, payments and how the payoff will work. The decision is yours, made with every number in front of you.
- 4
Closing on the new purchase
The bridge funds cover the down payment and closing costs on the property you are buying, and that purchase closes. We keep title and both agents informed so the scheduled dates stay on track.
- 5
Sale and payoff
Once the original property sells, the bridge is cleared from the sale proceeds at that closing. The same loan officer who opened your file sees it through this last step.
What shapes the price of a bridge loan
A bridge loan costs more than a long-term mortgage, with a higher rate and added fees, because the lender carries short-term risk tied to two properties at once. Your final figure comes down to a few specific factors, and we go through each of them with you before anything is signed. Every rate quote we give lists the fees one line at a time.
- Equity in the property you own
- A wide cushion between what you owe and what the property is worth usually earns more favorable terms. Pushing the loan toward the maximum allowed raises the price.
- How long the bridge stays open
- Fewer months on the loan means less interest paid. If the sale stretches out, the total climbs with it.
- Credit and debt-to-income
- The lender needs confidence that you can hold both properties through the overlap. A strong credit history and modest existing debt both work in favor of your rate.
- How ready the sale is
- A listing that is live or already under contract gives a clear path to payoff. A property that needs work before it can be shown is a less certain exit.
- Property type and location
- Values around Sunset Valley and the wider Austin market generally support this kind of lending, though acreage or an unusual property can shift the terms.
Bridge loan questions
How long does a bridge loan last?
These loans are meant to be brief, usually spanning the months between closing on the new place and selling the old one. The precise term depends on the program. We set it around a realistic sale window and leave a margin in case the market moves slowly.
What if my current property does not sell in time?
That is the central risk, so we plan for it at the start. Some programs offer an extension, and some borrowers can rent the property out or refinance into a longer-term loan. We review those paths with you before you sign, so a slow sale does not catch you off guard.
Will I really be paying two mortgages at once?
Often, yes, for a stretch of time. Some bridge loans carry interest-only payments or handle payments in another way. You get the monthly numbers in writing so you can decide whether the overlap feels manageable.
Should I use a bridge loan or a HELOC?
Both draw on equity, but they behave differently. A HELOC is a revolving line you can keep open for years, and it is usually easier to set up before the property is listed. A bridge is a short-term loan built to be repaid when the sale closes. On a call we can compare the two using your own numbers, and the HELOC page walks through how that line of credit works.
Is a bridge loan the same as a hard money loan?
Not quite. Hard money loans mostly serve investors and lean heavily on the value of the property itself. A bridge loan for someone moving also weighs your income and credit closely. If you are buying an investment property, the hard money loans page explains that route.
Talk through your move before you make an offer
A short phone conversation tells you whether a bridge loan fits, what you may qualify for and what carrying both properties would look like. One loan officer stays with you from that first call to the final payoff.