Bridge Loan / Bridge-to-Sale
Bridge financing may allow you to access equity in your current property so you can purchase your next property without waiting for the existing property to sell.
Access Equity • Reduce Sale Contingency Risk • Flexible Timing • Short-Term Financing
Commercial bridge financing and residential bridge-to-sale financing are separate lending channels. Residential transactions remain within the appropriate Loan Factory residential lending channel; this existing tool supports preliminary review of both.
Step 1 of 6
Current Property
Enter 0 if owned free and clear.
Estimated Equity
Market value − current mortgage balance.
* Required fields
For educational purposes only. Results are based solely on the information provided and do not represent an approval, qualification determination, rate quote, or commitment to lend. Bridge financing is subject to property review, credit, liquidity, documentation, repayment strategy, applicable underwriting requirements, and current program availability. Loan terms and guidelines are subject to change.
Bridge Financing
Current Property
You own a property with available equity.
Access Equity
Bridge financing may provide temporary liquidity.
Purchase or Transition
Use the financing to complete the next transaction or reposition the property.
Exit the Bridge Loan
Repay through sale, refinance, or another approved exit strategy.
Benefits
Program availability, terms, and leverage vary and are not guaranteed.
Bridge Financing for Real Estate Professionals
Bridge financing can help real estate professionals solve one of the most common transaction problems: a client who wants to purchase another property before their current property is sold.
Bridge Loan FAQ
A bridge loan is short-term real estate financing designed to help a property owner transition from one property to another, typically by providing liquidity from an existing property before it is sold.
Bridge financing is generally secured by your current property. Proceeds may be used toward the purchase of your next property, and the bridge loan is repaid when the current property sells or is refinanced.
That is the most common use of bridge-to-sale financing. It may allow you to buy before you sell, subject to equity, credit, liquidity, and a credible exit strategy.
Bridge-to-sale programs generally look for a strong equity position. Many scenarios are reviewed at roughly 50%–55% combined leverage against the lesser of the property's value or listing price, though requirements vary by program.
Bridge loans are short-term. Many bridge-to-sale structures have an initial term of approximately 12 months. Extensions may be available in some cases but are not guaranteed.
Many bridge loans use an interest-only structure. Payment structure varies by program and is determined during underwriting.
Investment properties may be eligible under certain bridge programs. An investment property bridge loan may have different leverage or documentation requirements.
Second homes may be eligible under certain bridge-to-sale programs, subject to equity and underwriting review.
Bridge loans are typically repaid from the sale of the current property, a permanent refinance, or another identifiable source of funds. A credible exit strategy is a key part of every review.
You remain responsible for the bridge loan and your existing obligations until it is repaid. That is why liquidity and a realistic sale timeline are reviewed up front. Extension options, if any, depend on the program.
Because funds may be available before your current property sells, bridge financing can help some buyers make offers without a home-sale contingency.
A HELOC is a revolving line of credit, often with longer terms and its own qualification rules. A bridge loan is short-term financing structured specifically around an exit, such as the sale of the current property.
Bridge-to-sale financing focuses on owners moving from one property to another. A commercial bridge loan is used for commercial, multifamily, or transitional properties and may use different leverage, DSCR, recourse, reserve, and exit requirements.