If you need bridge financing in 2026 to buy a new home before your current one sells (learn more about what is premier mortgage resources (pmr)? mortgage lender overview | rateroots) (learn more about what is groundfloor? mortgage lender overview | rateroots) (learn more about what is readycapital? business lender overview | rateroots) (learn more about what is onq financial? mortgage lender overview | rateroots), the right lender depends on which of three problems you actually have. For homeowners with substantial equity who want the lowest cost (learn more about how to get a mortgage with student loans?), a HELOC on your departing residence taken out before you list is almost always cheaper than a true bridge loan. For buyers who need a guaranteed, non-contingent offer, buy-before-you-sell programs like Homeward, Orchard, (learn more about what is land home financial? mortgage lender overview | rateroots) and Knock solve the competitive-offer problem that pure financing cannot. For investors and short-timeline purchases, hard money and private bridge lenders fund fastest. We compared 7 options on cost, speed to close, equity requirements, and the specific situation each one actually fits.
The core tradeoff: bridge financing is expensive because it is short, unamortized, and secured by a house you are trying to sell. Expect rates meaningfully above standard mortgage rates plus origination fees of roughly 1.5% to 3%. It buys you certainty and timing, not savings.
How We Ranked These Bridge Loan Options
| Criteria | Weight | Why It Matters |
|---|---|---|
| Total cost | High | Rate plus origination plus any dual-payment period determines what the convenience actually costs. |
| Speed to close | High | Bridge financing exists to hit a deadline; a 45-day close defeats the purpose. |
| Equity requirement | High | Most bridge products require 20–30%+ equity in the departing residence. |
| Contingency removal | Medium | The ability to make a non-contingent offer is the real value in a competitive market. |
| Repayment structure | Medium | Interest-only versus deferred payments determines your cash flow during the overlap. |
Data sources: Consumer Financial Protection Bureau guidance on home equity and second-lien products, Federal Reserve H.15 rate data, Freddie Mac Primary Mortgage Market Survey, and published program terms from each lender as of August 2026. Rates and terms change constantly — verify directly.
1. HELOC on Your Current Home — Lowest Cost If You Plan Ahead
Best for: Homeowners with 20%+ equity who have not yet listed
Typical cost: Variable rate, commonly the lowest option here; minimal or no origination fee
Speed: 2–6 weeks
A home equity line of credit on your departing residence is the cheapest way to access equity for a down payment, and most homeowners overlook it because they assume they need a product labeled "bridge loan." The critical constraint is timing: most lenders will not originate a HELOC on a home that is already listed, and many require it to stay unlisted for a period after closing. Open the line before you list.
Pros
- Lowest cost of any option on this list, often by a wide margin
- Interest-only draws mean you pay only for what you use
- Line remains available if your sale timeline slips
Cons
- Must be opened before listing — this disqualifies most people who wait
- Variable rate exposes you to rate movement during the overlap
- Approval requires qualifying for payments on both properties
Who This Is Best For
Homeowners planning a move 2–3 months out who have equity and can qualify with both mortgage payments counted. Not an option once your home is on the market, which is exactly when most people start looking.
2. Homeward — Best Buy-Before-You-Sell Cash Offer Program
Best for: Buyers in competitive markets who need a non-contingent offer
Typical cost: Program fee as a percentage of purchase price, plus standard closing costs
Speed: Approval in days; purchase timeline matches the transaction
Homeward buys the new home in cash on your behalf, you move in, then you sell your old home and buy the new one back from Homeward using standard financing. This converts a contingent offer into a cash offer, which is the actual problem in a market where sellers reject sale-contingent bids outright. You pay a program fee for that conversion.
Pros
- Turns your bid into a cash offer, which sellers strongly prefer
- Removes the risk of losing the new home while waiting on your sale
- You move once instead of twice, avoiding temporary housing
Cons
- Program fees are meaningful and are on top of normal closing costs
- Limited to specific states and metro markets
- Requires working with a partner agent in many cases
Who This Is Best For
Buyers in competitive markets where contingent offers are simply not accepted. If your local market accepts contingencies, you are paying for a solution to a problem you do not have.
3. Orchard — Best for a Guaranteed Backup Sale
Best for: Sellers who want a floor price on the departing home
Typical cost: Program fee; guaranteed backup offer typically below open-market value
Speed: Fast approval; timeline follows the transaction
Orchard combines a buy-before-you-sell structure with a guaranteed backup offer on your old home. If it does not sell on the open market within the program window, Orchard buys it at a pre-agreed price. That backup converts the biggest risk in this whole exercise — carrying two mortgages indefinitely — into a known worst case.
Pros
- Guaranteed backup offer caps your downside if the old home does not sell
- Move once, with the old home listed empty and staged
- Cash-backed offer strength on the purchase side
Cons
- The guaranteed price is below what a normal open-market sale would fetch
- Program fees plus a below-market backup can be expensive if you use it
- Available only in select markets
Who This Is Best For
Homeowners whose main fear is being stuck with two mortgages, especially in a slowing local market. Less compelling where homes are selling in days.
4. Knock Bridge Loan — Best Integrated Agent-Plus-Financing Model
Best for: Buyers who want financing and the sale process handled together
Typical cost: Interest on the bridge advance plus program fees
Speed: Approval within days
Knock advances funds for the down payment on your new home and can also cover the old home's mortgage payments and pre-sale repairs during the overlap. Covering the departing mortgage is the differentiator — the dual-payment period is what causes most bridge financing to become painful, and removing it changes the cash flow math substantially.
Pros
- Covers old mortgage payments during the overlap, easing cash flow
- Can fund pre-listing repairs and improvements to help the old home sell
- Non-contingent offer capability on the purchase
Cons
- Requires using Knock's partner agent network
- Costs accrue if the old home takes longer than expected to sell
- Geographic availability is limited
Who This Is Best For
Buyers who need help carrying two properties and want the sale prep funded. Not a fit if you have an agent relationship you will not give up.
5. Bank and Credit Union Bridge Loans — Best for Existing Relationships
Best for: Borrowers with a strong existing banking relationship and high equity
Typical cost: Rate above standard mortgage rates; origination around 1.5–3%
Speed: 2–4 weeks typically
Some banks and many credit unions still write traditional bridge loans: a short-term, interest-only loan secured by the departing residence, usually 6–12 months, that pays off when the home sells. Credit unions in particular often price these below national lenders for existing members. Availability varies enormously by institution, so this requires phone calls rather than online shopping.
Pros
- Often the lowest-cost true bridge product for existing members
- Straightforward structure with no program fees or agent requirements
- Relationship pricing can materially reduce origination costs
Cons
- Availability is inconsistent — many institutions no longer offer these
- Requires qualifying with both mortgage payments counted in your DTI
- Typically requires substantial equity, often 20–30%+
Who This Is Best For
Borrowers with an established credit union or community bank relationship and strong equity. Start here before paying program fees elsewhere — the call costs nothing.
6. Hard Money and Private Bridge Lenders — Fastest Close
Best for: Investors, unusual properties, and hard deadlines
Typical cost: Highest rates in this list, plus points
Speed: Often 7–14 days
Private and hard money lenders underwrite primarily on the property's value rather than your income, which is why they close fastest and accept situations conventional lenders decline — self-employed borrowers with complex returns, non-warrantable properties, and auction purchases. You pay for that speed and flexibility with the highest rates and points here.
Pros
- Fastest funding available, sometimes inside two weeks
- Asset-based underwriting accommodates complex or non-traditional income
- Will lend on properties conventional bridge lenders will not touch
Cons
- Highest total cost by a significant margin
- Short terms with balloon payments create real refinance risk
- Lender quality varies widely; diligence is essential
Who This Is Best For
Real estate investors and buyers facing a hard deadline with no conventional path. Owner-occupant buyers with time and normal income documentation should exhaust every other option first.
7. 401(k) Loan or Portfolio Line of Credit — Best Non-Mortgage Alternatives
Best for: Borrowers with retirement or brokerage assets who want to avoid a new mortgage
Typical cost: 401(k) loans charge modest interest paid back to yourself; portfolio lines are often competitively priced
Speed: Days
If you have a sizable 401(k) or taxable brokerage account, borrowing against those assets can beat a bridge loan on cost. A 401(k) loan is typically capped at the lesser of $50,000 or half your vested balance, and a securities-backed line of credit lets you borrow against a brokerage account without selling and triggering capital gains. Both carry distinct risks worth understanding before you use them.
Pros
- Frequently cheaper than any true bridge loan
- Fast, with minimal underwriting
- No lien on your home and no impact on mortgage qualification from a new mortgage payment
Cons
- A 401(k) loan generally becomes due on an accelerated schedule if you leave your employer, and unpaid balances may be treated as a taxable distribution
- Portfolio lines carry margin call risk if markets decline
- Both remove capital from long-term compounding during the loan
Who This Is Best For
Borrowers with stable employment and assets who need a modest bridge amount for a short period. A poor choice if your job is uncertain, if the market is volatile, or if you need more than the 401(k) cap allows.
Quick Comparison
| Option | Relative Cost | Speed | Equity Needed | Non-Contingent Offer? | Best For |
|---|---|---|---|---|---|
| HELOC (pre-listing) | Lowest | 2–6 weeks | 20%+ | No | Planners with equity |
| Homeward | Program fee | Days to approve | Varies | Yes | Competitive markets |
| Orchard | Program fee | Days to approve | Varies | Yes | Guaranteed backup sale |
| Knock | Interest + fees | Days to approve | Varies | Yes | Dual-payment relief |
| Bank/credit union bridge | Moderate | 2–4 weeks | 20–30%+ | Partially | Existing relationships |
| Hard money / private | Highest | 7–14 days | 25–35%+ | Yes, effectively | Investors, hard deadlines |
| 401(k) / portfolio line | Low to moderate | Days | N/A | Depends on amount | Asset-rich borrowers |
What Bridge Financing Actually Costs
Model the total, not the rate. A representative example: borrow $150,000 for four months at a bridge rate of roughly 9–11%, with 2% origination. Origination runs about $3,000, and interest-only payments over four months add roughly $4,500 to $5,500. Total cost lands near $7,500 to $8,500 — before counting the months you are carrying two mortgages, taxes, and insurance.
Two questions determine whether that is worth paying. First: would a contingent offer be accepted in your market? If yes, the cheapest bridge loan is no bridge loan. Second: what is your realistic days-on-market? Bridge costs are linear in time, and every month your old home sits adds to the bill. Get a hard comparative-market analysis from an agent before committing, and price the scenario where your home takes twice as long to sell as you expect.
How We Researched This
We reviewed Consumer Financial Protection Bureau guidance on home equity products and short-term secured lending, Freddie Mac Primary Mortgage Market Survey data for baseline mortgage rate context, Federal Reserve H.15 rate series, and published program terms and disclosures from each lender as of August 2026. We excluded lenders operating in fewer than five states and any program without published fee disclosure. Bridge loan pricing is highly borrower- and property-specific — the ranges here are illustrative, not quotes. Last updated: August 2026. We review this guide quarterly.
Frequently Asked Questions
What is a bridge loan?
A bridge loan is short-term financing, typically 6–12 months, secured by your current home and used to fund the down payment on a new one before the old property sells. It is usually interest-only and repaid in full from the sale proceeds.
What are bridge loan rates in 2026?
Bridge rates are meaningfully higher than standard 30-year mortgage rates because the loans are short-term, unamortized, and carry greater lender risk. Expect origination fees of roughly 1.5–3% on top. Actual pricing depends heavily on your equity, credit, and the lender — request written quotes rather than relying on advertised ranges.
How much equity do I need for a bridge loan?
Most lenders want at least 20% equity in the departing residence, and many require 25–30%. Combined loan-to-value across both properties is generally capped around 80%, so the more equity you hold, the more options you have.
Is a HELOC cheaper than a bridge loan?
Almost always, yes — often substantially. The catch is timing: most lenders will not originate a HELOC on a home that is already listed for sale. If you know a move is coming, open the line months before you list.
Can I get a bridge loan with bad credit?
Conventional bridge lenders generally require good credit and the ability to carry both mortgage payments. Hard money and private lenders underwrite primarily on property value and will lend to weaker credit profiles, but at substantially higher cost.
What happens if my old home does not sell before the bridge loan is due?
You will typically need to extend the loan, often at additional cost, refinance it, or reduce your asking price to sell. This is the central risk in bridge financing, and it is why programs offering a guaranteed backup purchase have real value in slower markets.
Are buy-before-you-sell programs worth the fee?
They are worth it when a contingent offer would not be accepted in your market, or when carrying two mortgages would genuinely strain your finances. In markets where sellers still accept contingencies, the fee is buying certainty you may not need.
Do I have to make payments on a bridge loan?
It varies. Many bridge loans are interest-only with monthly payments; some defer all payments until the property sells, which raises the total cost but eases cash flow during the overlap. Confirm the payment structure in writing before closing.
Can I use a bridge loan for an investment property?
Yes, and private and hard money lenders specialize in exactly this. Terms for investment properties usually require more equity and carry higher rates than owner-occupied bridge financing.
What are the alternatives to a bridge loan?
A pre-listing HELOC, a cash-out refinance done before listing, a 401(k) loan, a securities-backed line of credit, negotiating a rent-back or extended closing with the seller, or simply making a sale-contingent offer where your market allows it. The cheapest bridge is frequently no bridge at all.
Important Disclosures
This content is for informational and educational purposes only and does not constitute financial, lending, tax, or legal advice, nor an offer or commitment to lend. Rates, fees, program terms, and geographic availability change frequently and vary by borrower, property, and state — verify all details directly with each lender and obtain written quotes. Cost examples are illustrative and are not quotes. Borrowing against your home places it at risk; borrowing against retirement or brokerage assets carries tax and market risks. Consult a licensed mortgage professional and a tax advisor about your circumstances. Some links on this page may be affiliate links, which does not influence our rankings; our methodology is described above.
Reviewed by the RateRoots editorial team. We evaluate lending products against published program terms and federal consumer lending guidance, and update this guide quarterly.
