ServicesBridge Loans
Bridge Loans in Bee Cave
A bridge loan lets you use equity in the property you own now to buy your next one before the sale closes. We look at your numbers first and tell you plainly whether a bridge loan fits or whether a simpler route will do the job.
Buying first, selling second
Timing is the hard part of moving up. The right property comes on the market, but your equity is tied up in the one you live in. A bridge loan is short-term financing secured by that current property. It can cover a down payment, or in some cases most of the purchase, until your sale closes and the bridge is paid off.
It is a useful tool, but not always the best one. Sometimes a HELOC opened ahead of listing, or an offer contingent on your sale, gets you to the same place with lower cost and less to carry. We start by checking whether one of those will work. When it won't, because the seller won't take a contingency or you need more cash than a line of credit allows, we explain why a bridge loan makes sense and what it will ask of you.
What we handle on a bridge loan
- 01
A straight fit check
We start by weighing a bridge loan against a HELOC, a contingent offer and selling first. You hear the tradeoffs plainly, including when the simpler path wins.
- 02
Reviewing equity and likely sale price
We look at your balance, a realistic sale price and how long comparable properties are taking to sell. That determines how much the bridge can cover and for how long.
- 03
Planning for overlapping payments
Many borrowers carry the bridge, the new mortgage and the old one together for a time. We put those monthly figures side by side so you know the overlap cost ahead of time.
- 04
Lining up your new mortgage
A bridge loan seldom works alone. We match it with the long-term loan on your purchase, whether conventional, FHA or VA, so the two closings fit together.
- 05
Planning your exit
Every bridge needs a payoff source, usually the sale of your current property. We discuss what happens if the sale runs long and how much cushion the term gives you.
Questions about Bridge Loans?
Call(512) 881-7587Signs a bridge loan may be the right call
Sellers want a non-contingent offer
When competition is tight, offers that depend on selling another property often lose out. A bridge can let you make a cleaner offer.
Your equity is your down payment
You have real equity but not much cash. A bridge can put that equity toward the down payment on your next place.
You would rather move just once
Selling first can mean a temporary rental and a second move. Buying first means one move and a vacant, staged property to list.
A line of credit falls short
If you need more than a HELOC allows, or a lender will not open one on a property you plan to list, a bridge loan may cover the difference.
Your sale is pending but not final
A buyer is under contract, but the dates do not match your purchase. A short bridge can carry you for those few weeks.
How a bridge loan comes together
- 1
An initial phone call
We discuss your current property, the one you want to buy and your timing. This is when we tell you whether a bridge loan is worth pursuing.
- 2
Pre-qualifying and running numbers
We look at income, credit, your existing mortgage balance and estimated value. You receive a written outline of the bridge amount, the new loan and the monthly cost during the overlap.
- 3
Applying and appraising
When you choose to proceed, we take the application and order what the lender requires, often an appraisal of the property you are selling. Meet at our office or by phone and video, as you prefer.
- 4
Closing your purchase
The bridge and new mortgage close at the same time or one right after the other. You get the keys to your next place while the first is still listed.
- 5
Paying off at the sale
Once your current property sells, the bridge is paid off from that closing's proceeds. We keep in touch through the listing and sale so the end holds no surprises.
What shapes the cost of a bridge loan
Since bridge loans are short-term and rely on a future sale, they typically come with a higher rate and more fees than a standard home loan. That is the main reason we look at lower-cost options first. Your actual cost depends on a few factors we go over with you in writing.
- Equity in what you own now
- More equity lowers the loan-to-value and usually improves terms. A small equity cushion limits what a bridge can provide.
- How much and how long
- Borrowing more, or for a longer period, increases total interest and fees. A smaller, shorter bridge costs less.
- How payments are set up
- Some bridges are interest-only, and others defer payments until the sale. Each shifts what you pay monthly versus at payoff.
- Your credit and debts
- Lenders check whether you can carry overlapping payments. Good credit and room in your budget usually bring better pricing.
- How fast your sale closes
- A quick sale keeps carrying costs down. A long time on the market adds months of interest.
Bridge loan questions
Will I pay two mortgages at the same time?
Often, for a while. Some bridge setups delay or lower payments until the sale closes, but the old mortgage usually still has to be paid. Pre-qualification includes the full monthly picture for the overlap.
What happens if my current property has not sold when the bridge term ends?
That is the biggest risk, so we plan around it from the start. Depending on the lender and your finances, an extension, a price cut or a refinance may be options. We set the term with a realistic cushion based on how long similar properties take to sell.
Does a HELOC cost less than a bridge loan?
Usually. If a HELOC opened before listing covers your need, it is often the better pick, and we will say so. A bridge loan makes sense when the amount, the timing or the lender's rules make a HELOC impractical.
Who handles my bridge loan?
A loan officer with 11 years in the mortgage industry. We have been NMLS licensed for 10 years, and bridge loans are where that experience counts most.
Will a bridge loan work for an investment property?
Bridge loans are designed mostly for moving between primary residences. For buying or renovating an investment property, our hard money loans page covers financing built for that.
See whether buying first makes sense for you
A short conversation tells us your equity, your timeline and your options. From there, we can pre-qualify you and show you the numbers side by side.