ServicesBridge Loans
Bridge Loans in Cedar Park
A bridge loan borrows against the equity in the property you own today, freeing cash for your next purchase while the first sale is still pending. We set target dates for both closings and call you early when one moves, so you pack up and move one time.
How bridge financing works, and when to use it
Bridge financing is a short-term loan secured by the property you already own. It releases equity before that sale closes, which means your offer on the next property does not have to depend on selling first. Terms usually run six to twelve months, and the sale proceeds pay the loan off.
The right time to use one is when two transactions will not land on the same calendar. In a busy spring market, sellers often pass on offers that hinge on another sale, and the bridge takes that condition off the table. It does cost more than a standard home loan. We suggest it only when the timing gap is real and a lower-cost option, such as a HELOC opened before you list, cannot cover it.
The exit, meaning the sale of the old property, holds the whole plan together. We set it against a realistic listing and sale window and walk through what happens if the sale runs longer than expected.
What we handle on a bridge loan
Equity and payoff math
We take your current mortgage payoff, a realistic sale price and selling costs, and work out how much equity can actually be borrowed. You see the numbers on paper before anything is ordered.
Coordinating the purchase loan
Most borrowers pair the bridge with a conventional loan on the new property. We line up both files so the underwriter on the purchase loan sees the bridge payment and the planned payoff correctly.
A written timeline for both closings
You get target dates for appraisal, underwriting, the purchase closing and the expected sale. When a date shifts, your loan officer calls you with the new date and the reason.
Payment structure options
Many bridge loans carry interest-only or deferred payments until the sale. We explain how each structure affects your monthly cash flow and your debt-to-income ratio, which is why the choice matters for qualifying.
Payoff at the sale
When the old property closes, the title company pays off the bridge loan from the proceeds. We confirm the payoff figure with you and the title office ahead of that date.
Signs a bridge loan is the right call
- You found the next place first
- The property you want is listed now, and yours is not ready to sell. A contingent offer may lose to a buyer who can close without one.
- Your down payment is tied up in equity
- Most of your savings sits in the property you live in. Without the sale, you cannot reach the down payment that avoids mortgage insurance on the new loan.
- You want to move once
- Selling first can mean a short-term rental, storage and a second move. Buying first lets you prepare and stage the old property after you have moved out.
- A relocation date is fixed
- A job start date or a school calendar sets the deadline, and the sale cannot be rushed to match it.
How the bridge loan process runs
- 1
Start with a phone call
We ask about your current loan balance, the property you want, your income and your target move date. From that we give you rate quotes for the bridge and the purchase loan.
- 2
Review equity and both properties
We order an appraisal on the property you own and review the contract on the new one. The combined loan-to-value on the existing property sets how much the bridge can provide.
- 3
Underwriting on both files
The underwriter checks credit, income and whether you can carry both obligations for the bridge term. We send you a short list of documents and tell you when each one is due.
- 4
Close on the purchase
The bridge funds at or before the purchase closing, so the down payment and closing costs are in place. You sign once you have reviewed the final figures.
- 5
Sell and pay off the bridge
When your old property sells, the payoff is handled at that closing. We track the sale date and stay in touch if it slips.
What moves the cost of a bridge loan
A bridge loan carries a higher rate than a standard mortgage because it is short and depends on a future sale. Your price comes down to a few specific factors, and we show each one in your written quote before you commit.
- Equity in the current property
- The lower the combined loan-to-value after the bridge, the less risk the lender carries. More equity usually means a better rate.
- Length of the term
- A longer term gives more room for the sale but adds interest and sometimes extension fees. We size the term to a realistic sale window rather than the shortest possible one.
- Credit and debt-to-income
- Your credit score and how comfortably you can carry two payments affect both the rate and whether you qualify at all.
- Appraisal and closing costs
- You may pay for appraisals on both properties plus origination and title charges on the bridge. These show as line items, not a lump sum.
Bridge loan questions
- What happens if my old property does not sell before the bridge term ends?
- Some bridge loans can be extended for a fee, and some cannot. We go over the extension terms before you sign and help you set a realistic list price and timeline from the start. If the sale looks slow, we talk with you early about options such as refinancing the old property instead of waiting.
- Do I have to make two mortgage payments at once?
- Often the bridge itself has interest-only or deferred payments, which lowers the monthly load. You will still pay your existing mortgage and the new one until the sale. We run those numbers with you so the overlap is planned, not a surprise.
- How long does it take to close?
- It depends mostly on the appraisal schedule and how quickly documents come in. We give you a written timeline at the start and update it whenever a step moves, so you can set your purchase closing date with confidence.
- Is a HELOC cheaper than a bridge loan?
- Usually, yes. A HELOC generally has to be opened before the property is listed, and many lenders will not open one on a listed property. If you have not listed yet, we will compare both on the phone.
- How is this different from a hard money loan?
- Hard money loans are mainly for investors buying or rehabbing property and are based heavily on the property itself. A bridge loan for a primary residence looks closely at your income and credit as well. If you are buying an investment property, our Hard Money Loans page may fit better.
Line up both closings before you make an offer
Tell us your target move date and what you owe on the current property. We will show you what the bridge and the purchase loan look like together, and how many weeks the plan needs.