Bridge Loan Alternative: How to Buy Before You Sell Your Home
Buying your next home before selling your current one can feel impossible without the right strategy. Many homeowners think the only solution is a bridge loan.
While a traditional bridge loan can help you “buy before you sell,” it often comes with costly fees, strict time limits, and unnecessary financial risk. The good news is that there is a smarter, more flexible bridge loan alternative that gives you the same ability to move first without the downsides.
Why Traditional Bridge Loans Cause Problems
Bridge loans are designed to provide short-term financing to buy a new home before selling your old one. The problem is that they often create more stress than solutions:
High fees that can range from $20,000 to $50,000 or more, depending on the loan amount.
Strict timelines that create pressure to sell quickly, even if the market is not ideal.
Mandatory refinancing that forces you into a new long-term loan if you want to keep some debt in place. This can mean more fees and added complexity.
These conditions can lead to rushed decisions, quick price cuts, and unnecessary financial risk.
A Smarter Bridge Loan Alternative
Our bridge loan alternative offers the same core benefit: the ability to buy your next home before you sell your current one. The difference is that it avoids the high fees and rigid timelines of a traditional bridge loan.
Key advantages include:
Much lower fees, typically less than $10,000.
Long-term financing from the start, so you can keep the loan as long as you want without being forced to refinance.
Flexibility to sell on your schedule without sacrificing your asking price to meet a loan deadline.
This program allows you to close on your new home before your current one is listed. You gain the breathing room to move, prepare your home for sale, and negotiate from a position of strength.
How the Bridge Loan Alternative Works
You can qualify without having the mortgage from your current home counted against you if you:
Sign a letter of intent to list your current home within 90 days of closing on the new purchase.
Have at least 20% equity in your current home.
Show 6 to 24 months of reserves (cash left over after closing) to cover the payment on your current home, depending on your financial profile.
Down payment options:
A down payment is required. In many cases, we help clients fund it by opening a HELOC on their current, vacating residence. This allows you to tap into your equity before the home is sold. Depending on your equity, you may be able to:
Cover closing costs on the new purchase
Make improvements to the home you are selling
Upgrade your new home
Set aside extra cash to help with payments until the old home sells
The HELOC payment is also excluded from the debt-to-income calculation when qualifying.
Why It Fits Our Holistic Mortgage Planning Approach
This strategy supports all three pillars of Holistic Mortgage Planning:
Optimize Leverage: Use your equity to create flexibility without draining cash reserves.
Mitigate Risk: Avoid the pressure and financial risk of strict loan deadlines.
Maximize Wealth: Sell at the right time and keep liquidity available for future opportunities.
Instead of making rushed decisions, you can sell on your terms and move into your new home with confidence.
Is the Bridge Loan Alternative Right for You?
If you want to buy before you sell, this program can help you make the move without the stress, cost, and risks of a traditional bridge loan.
We have helped clients avoid rushed sales, secure better offers, and transition smoothly into their new homes while keeping control over their finances.
Want to Learn More?
We recently recorded a podcast episode explaining exactly how this bridge loan alternative works, with real-life examples and tips for getting approved.
🎧 Watch or listen here: Bridge Loan Alternative Podcast Episode
