For many homeowners, one of the most stressful parts of moving isn’t just finding the next property—it’s coordinating the timing of selling their current home while purchasing the new one. The thought of carrying two mortgages, or losing out on a dream home because the current property hasn’t sold, creates real pressure.

In fact, a survey by Clever Real Estate revealed that about 1 in 5 homeowners listed poor timing between selling and buying as one of their biggest fears.

Traditionally, buyers try to protect themselves by making their purchase contingent on selling their existing home. But in today’s competitive market, contingent offers often get pushed to the bottom of the pile. To avoid this, some people turn to personal loans, dip into retirement accounts, or even use credit cards—options that can be expensive and risky.

Fortunately, there’s another solution: the bridge loan.

What Is a Bridge Loan?

A bridge loan is a short-term financing tool designed to “bridge” the gap between selling your current home and buying your next one. It allows you to borrow against the equity in your existing property, giving you access to funds before the sale closes.

In practical terms, this means you can put a down payment on a new home without waiting for your old one to sell. It provides breathing room and flexibility during what is usually a stressful transition.

Why Bridge Loans Are Gaining Popularity

Homeowners today have more equity than ever before. According to the National Association of REALTORS®, average household wealth from home equity has increased by more than $140,000 in just the last five years. That growth has fueled interest in bridge loans, as people look for ways to leverage this wealth without depleting savings or selling investments.

With higher living costs, rising credit card debt, and shrinking savings accounts, tapping into home equity has become a smart alternative for many families. A bridge loan provides that access while giving buyers the confidence to move forward without the burden of contingencies.

How Much Equity Can You Use?

Lenders usually allow homeowners to borrow a percentage of their available equity. The goal is to provide enough to cover the down payment and closing costs on the new home while ensuring borrowers aren’t financially stretched too thin. Each lender’s terms vary, so it’s important to discuss specifics with a trusted mortgage professional.

What Do You Need to Qualify?

While equity plays a major role, it’s not the only factor. Lenders also look at your credit history, income, and overall financial profile to ensure you can comfortably manage payments during the overlap period. In many ways, qualifying for a bridge loan feels similar to applying for a traditional mortgage.

How Long Do You Have to Sell?

Most bridge loans are structured to give homeowners up to six months to sell their current property. If the home doesn’t sell within that time, lenders typically work with clients on options like refinancing, extending the loan, or transitioning to another financial product. The goal is to keep homeowners from feeling “stuck” if the market moves slower than expected.

Competing in a Market of Cash Buyers

In today’s real estate climate, cash buyers often dominate the market. The next strongest position is making an offer without contingencies. By eliminating the need to sell your existing home first, a bridge loan allows buyers to present stronger, cleaner offers that can compete more effectively—even against cash.

The Bottom Line

Buying and selling at the same time will always carry challenges, but bridge loans can ease much of the stress. By giving homeowners access to their home equity upfront, these loans remove the rush, strengthen offers, and allow for a smoother transition from one home to the next.

If you’re thinking about moving and want to explore whether a bridge loan is right for you, connect with a trusted real estate professional and mortgage advisor to walk through your options.