Sprint Funding/Blog/Loan/How to Use a Bridge Loan for Smooth Real Estate Transitions
May 10, 2025

How to Use a Bridge Loan for Smooth Real Estate Transitions

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Timing matters in real estate—especially in fast-paced markets like Los Angeles, San Francisco, or San Diego. If you’ve found the perfect home but haven’t sold your current one yet, you might feel stuck. That’s where a bridge loan helps. It gives you short-term funding so you can move forward with your next home without waiting for your current property to sell.

At Sprint Funding, we help homeowners and investors access smart financing solutions, including bridge loans that help keep your plans on track. Have questions or want to know if a bridge loan is right for you? Contact us today to speak with our team and get personalized guidance.

Key Takeaways

  • A bridge loan is a short-term solution for buyers needing to purchase a new home before selling their current one.
  • Borrowers can access up to 70–80% of the combined value of both properties.
  • Most bridge loans require interest-only monthly payments and are paid off after the home sells or is refinanced.
  • Bridge loans are useful in competitive markets, allowing buyers to make non-contingent offers.
  • Approval depends on income, equity, credit, and a clear exit strategy.
  • They can be used with FHA or VA loans for more flexible financing.
  • Approval and funding can often happen within a week with the right documentation.
  • Bridge loans help reduce stress by allowing more control over timing and transition.

What Is a Bridge Loan?

A bridge loan is a short-term loan that helps cover the gap between buying a new property and selling your current one. It’s helpful when you need to act quickly and don’t want to lose a home while waiting for your existing property to close.

Bridge loans let you borrow against the equity in your current home. You pay it off after your home sells or once you refinance into long-term financing. This option gives flexibility to buyers relocating, downsizing, investing, or upgrading on a tight timeline.

How Bridge Loans Work

Bridge loans are structured for short durations—usually six months to one year, though some go up to two years. They’re built to give borrowers room to move forward without delay.

Miniature wooden house, dollars and the inscription Loan on the scales. Buying a home in debt. Family investment in real estate and risk management concept. Loan for a mortgage. apartment rental saleLoan Types

There are two main types:

  • Lump sum – You receive all the funds upfront. Ideal for covering a down payment.
  • Line of credit – Borrow what you need, when you need it, with more flexibility.

Example: A family in Los Angeles uses a lump sum bridge loan to secure a new home while prepping their current house for sale.

Equity-Based Lending

These loans are secured by your existing property. Most lenders offer up to 70–80% of the combined value of your current and new homes. This is useful in competitive markets where buyers must act fast.

Repayment

Most bridge loans require monthly interest-only payments. The full balance is usually paid off when your current property sells or once you secure a new long-term loan.

Pairing With Other Financing

You can combine a bridge loan with government-backed financing like FHA or VA loans. Veterans in Orange County, for example, may use their VA loan for long-term funding while using a bridge loan for the interim purchase.

Who Can Qualify for a Bridge Loan?

Approval is based on a few main factors: your financial health, how much equity you have, and your plan for repaying the loan.

Financial Profile

Lenders look at your:

  • Income and job stability
  • Credit history
  • Debt-to-income ratio
  • Monthly obligations

A high credit score helps, but it’s not always required. Some lenders also work with foreign nationals who don’t have a U.S. credit history.

Equity

You need strong equity in your current home. To calculate it, subtract your mortgage balance from your home’s market value. Many lenders allow up to 80% CLTV, but some may cap it at 70% depending on risk factors.

Exit Strategy

Lenders want a repayment plan—either through the sale of your current property or by refinancing into a standard mortgage. Having a buyer lined up, or a home already under contract, can strengthen your application.

How to Apply for a Bridge Loan

The process moves quickly, especially with lenders that specialize in short-term real estate funding.

Choose the Right Lender

Work with a lender who understands the urgency and structure of bridge financing. Sprint Funding offers direct experience helping clients through this process efficiently.

Front view of a female real estate agent shaking hands with a senior man while sitting in the living room at home

Submit Your Application

You’ll provide financial info, details about your current and future homes, and your exit strategy. A home appraisal will be ordered to confirm the value of your property.

Provide Supporting Documents

You’ll likely need:

  • Recent pay stubs or proof of income
  • Tax returns
  • Bank statements or asset documentation
  • Current mortgage statements
  • Appraisal report or purchase agreement for the new home

Why Use a Bridge Loan?

Bridge loans are useful in many scenarios. Here’s why they work well in today’s market:

Quick Access to Funds

If you’re buying in a market like San Francisco or San Diego, you need to move fast. A bridge loan gives you instant access to equity so you can make an offer now—not after your home sells.

Flexibility During Life Changes

Bridge loans are helpful during job relocations, divorces, estate transitions, or buying a fixer-upper. They give you breathing room to make the right decisions.

Avoiding Contingencies

Home purchase offers that depend on selling another property are often rejected. With a bridge loan, you can submit a non-contingent offer, giving you a better shot at winning the deal.

More Control Over Your Timeline

Coordinating two closings is stressful. A bridge loan gives you the space to sell your current home without rushing—or settling for a lower offer just to make a deadline.

Is a Bridge Loan Right for You?

Bridge loans aren’t designed for long-term use and typically have higher interest rates than regular mortgages. Still, they’re valuable when speed, flexibility, and timing are more important than cost.

If your current home has enough equity and you’re confident it will sell, this short-term solution may be exactly what you need.

Talk to Sprint Funding About Your Bridge Loan Options

Bridge loans help you move forward when the timing between buying and selling doesn’t line up. They give you access to funds now, so you don’t lose out while waiting for your current home to sell.

At Sprint Funding, we’ll help you look at your options, understand the numbers, and make a decision that fits your goals.

Call us now to talk about how a bridge loan can help you make your next move with confidence.

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