ServicesBridge Loans
Bridge Loans in Kyle, TX
Found the next place before the current one sold? A bridge loan uses the equity you already have to cover the down payment and closing on the new property. We walk you through the numbers plainly, so you know the full cost of buying first and selling second.
What a Bridge Loan Does
A bridge loan is short-term financing. It is secured by the property you own now and gives you cash to put toward the one you want to buy. When the old property sells, the sale pays off the bridge loan.
It makes sense when timing is the problem, not your credit or income. Maybe the right place came up and the seller won't take an offer that depends on your sale. Maybe you don't want to move twice. A bridge loan lets your offer look like any other buyer's.
It is not the cheapest money you can borrow. Rates are usually higher than a standard home loan, and the term is short. We will tell you if a HELOC or simply waiting would serve you better. Treating you like a neighbor means giving you that answer up front.
What We Handle on a Bridge Loan
- 01
An honest equity check
We look at what the current property is likely to sell for and what you still owe on it. That gap is the equity a bridge loan can draw on. If the gap is thin, we say so before you spend money on an appraisal.
- 02
Pairing it with your new mortgage
Most borrowers need a purchase loan on the new property too. We line up the bridge loan and the new home loan together so the closing dates and amounts fit.
- 03
Payment planning for the overlap
For a stretch you may carry the old mortgage, the new one and the bridge loan. We lay out what each month looks like in writing, so the overlap doesn't surprise you.
- 04
A clear exit plan
We talk through what happens if the sale takes longer than you hope. You'll know the term, any extension options and what payoff looks like before you sign.
- 05
Help with your agent's timeline
We keep in touch with your real estate agent so the listing, the offer and both closings stay on the same calendar.
Questions about Bridge Loans?
Call(512) 881-3709Signs a Bridge Loan Fits Your Move
Sellers won't accept a contingent offer
In a busy market, an offer that depends on your sale often loses. Bridge financing lets you drop that contingency.
Your down payment is tied up in equity
You have plenty of value in the current property but not much cash in the bank. A bridge loan turns some of that equity into a down payment now.
You don't want to move twice
Selling first can mean a rental, a storage unit and two moving days. Buying first keeps it to one.
Your current property should sell well
Bridge loans work best when the old property is in good shape and priced to sell. A long, uncertain sale makes them riskier.
You can handle a short overlap
Your income and savings can carry a few months of extra payments if the sale runs long. If that would strain you, we'll look at other routes first.
How a Bridge Loan Comes Together
- 1
A first conversation by phone
Tell us what you own, what you owe and what you want to buy. We'll give you rate quotes and a rough idea of whether the numbers work. This usually takes one call.
- 2
Pre-qualification and paperwork
We gather income documents, mortgage statements and your listing plans. Then we check how much you can qualify for on both the bridge loan and the new purchase loan.
- 3
Appraisal and approval
An appraisal sets the value of the current property. Once it's in, we confirm the loan amount and send you a written breakdown of rates, fees and payments.
- 4
Closing on the new property
The bridge funds go toward your down payment and closing costs. You move in, then finish selling the old property on your own schedule.
- 5
Payoff when it sells
At the sale closing, the title company pays off the bridge loan from your proceeds. We confirm the payoff amount ahead of time so nothing is left hanging.
What Moves the Cost of a Bridge Loan
Bridge loans cost more than a long-term mortgage because the lender is covering a short, uncertain window. What you actually pay depends on a handful of things we can look at together on the phone. You'll get every fee in writing before you commit.
- How much equity you have
- More equity in the current property usually means a lower risk loan and better terms. Borrowing close to the limit costs more.
- Length of the term
- A shorter term keeps total interest down. If you expect a longer sale, plan for more interest and possibly an extension fee.
- Your credit and income
- Lenders want to see that you can carry both properties for a while. Strong credit and steady income help the rate.
- Fees at closing
- Origination, appraisal and title costs apply to a bridge loan just as they do to any home loan. Some can be rolled into the loan, which raises the payoff amount.
- How payments are set up
- Some bridge loans charge interest-only payments each month, while others defer interest until the sale. Each choice changes your monthly cash and your final payoff.
Bridge Loan Questions
What happens if my current property doesn't sell in time?
You keep making payments on the bridge loan until it sells or the term ends. Some loans allow an extension for a fee. If the sale stalls, you may need to lower the price or refinance. We go over these options before you close, not after.
Do I have to qualify for both mortgages at once?
Usually, yes. A lender wants to see that your income can cover the old payment, the new payment and the bridge loan during the overlap. Some programs treat a listed property differently, and we'll tell you which rules apply to you.
How is a bridge loan different from a HELOC?
Both draw on equity. A HELOC is a revolving line you can keep for years, but many lenders won't open one on a property that's listed for sale. A bridge loan is built for the buy-then-sell window. We can compare the two for your situation, and our HELOC page covers that option in more detail.
Can investors use a bridge loan?
Yes, investors use short-term financing to move between properties. If you're buying a property that needs work or closing very fast, our hard money loans may be the better fit. We'll help you sort out which one suits the deal.
How much of my equity can I borrow?
It depends on the appraised value, what you owe and the lender's limits. Most lenders leave a cushion of equity untouched. Once we know your numbers, we can give you a realistic figure by phone.
Talk Through Your Move Before You Make an Offer
Give us a call with what you own and what you want to buy, whether that's in Kyle, Buda or San Marcos. We'll run the numbers with you and tell you straight whether a bridge loan makes sense.