In short
A bridge loan is short-term financing secured by your current home that funds the down payment on your next one, so you can buy before you sell. It's repaid when your current home sells. Paired with a Greenlight Approval, it supports a non-contingent offer. Minimum credit is 680 for primary homes and 620 for investors.
Reviewed by Scottie Campbell, NMLS #1610726 · Last updated October 18, 2026
What is a bridge loan and how does it work?
A bridge loan is short-term financing secured by the home you already own. It provides the down payment and closing costs for your next home so you can buy before you sell. When your current home sells, the proceeds pay off the bridge. Paired with a Greenlight Approval, it lets you make an offer that isn't contingent on selling your home. The minimum credit score is 680 for a primary residence and 620 for an investor bridge.
Key takeaways
Ready to move up but your down payment is locked in the house you live in? A bridge loan lets you use that equity to buy your next home first, then pay the bridge off when your current home sells. I'm Scottie Campbell, and I'll help you decide whether a bridge, a HELOC or another approach fits your move best.
The Buy-Before-You-Sell Problem
If you already own a home and you're ready to move up, you've probably run into the timing puzzle. Most of your down payment is tied up in the house you live in. Sell first, and you may be scrambling for a rental or a second move. Buy first with an offer that depends on your current home selling, and in a busy market a seller may pass you over for a buyer who doesn't need that condition.
A bridge loan is built for exactly that gap. It lets you use the equity in your current home to buy the next one first, then pay the bridge off when your current home sells.
How a Bridge Loan Works
The basic structure is simple:
- Tap your current equity. A short-term loan is secured by the home you own now.
- Fund the new purchase. Those funds cover the down payment and closing costs on your next home, alongside a new mortgage for the rest.
- Move once. You close on the new home, move in on your schedule, and then list and sell the old one without living through showings.
- Pay it off. When your current home sells, the sale proceeds repay the bridge loan.
Structures vary. Some bridge loans pay off your existing mortgage and roll it in, while others sit behind it as a second lien. Payment arrangements during the bridge period vary too. I'll show you the options available for your situation and what each one looks like month to month.
Your rate depends on your scenario and the day's market. Reach out and I'll price it for real.
Bridge Loan Plus Greenlight Approval: A Non-Contingent Offer
Here's where it gets powerful. On its own, a bridge loan gives you access to your equity. Paired with a Greenlight Approval, it lets you write an offer that isn't contingent on selling your current home.
With a Greenlight Approval, we pre-underwrite your file up front, before you're under contract. It's the highest assurance of approval available, and it can make your offer as strong as cash, and at times more attractive to a seller. Put that together with bridge financing for your down payment and you're walking in as a confident buyer, not one asking the seller to wait on your sale.
What that means for you is that you can compete for the home you actually want instead of the one that happens to line up with your listing date.
What It Takes to Qualify
- Minimum credit score of 680 for a buy-before-you-sell bridge on a primary residence
- Minimum credit score of 620 for an investor bridge loan
- Meaningful equity in the home you're selling
- A plan to sell, usually with the current home ready to list soon after you close
- The ability to handle both obligations for a period, depending on how the bridge is structured
- Documented income and assets, reviewed up front through the Greenlight Approval process
If your credit isn't at 680 today, can't do it now doesn't mean can't do it ever. We'll look at the alternatives below and build a Mortgage Action Plan for the move.
Bridge Loan vs. Other Ways to Bridge the Gap
| Approach | How it works | Trade-off |
|---|---|---|
| Bridge loan | Short-term loan on your current home funds the new purchase | Extra cost for the bridge, but a cleaner offer and one move |
| HELOC on your current home | Open a line before you list and use it for the down payment | Must be in place before the home goes on the market |
| Sale-contingent offer | Your purchase depends on your current home selling | No bridge cost, but a weaker offer when other buyers are bidding |
| Sell first, then buy | Sell, move to temporary housing, then shop | Simplest financing, but two moves and time pressure |
Quite frankly, none of these is right for everybody. Some families don't need a bridge at all, especially if they can qualify for the new home while still carrying the old one. I'll tell you if that's you.
The Risks to Weigh
- Your home may take longer to sell than you expect. Plan for a cushion, and price the current home realistically.
- Carrying costs add up. Two homes means two sets of taxes, insurance and utilities for a while.
- Bridge loans have their own costs. We'll put those against the benefit of a stronger offer and a single move.
This is where a Total Cost Analysis earns its keep. I lay out the total cost of each path over the time you'll own the new home, so the decision is based on the whole picture, not just the first month.
For Real Estate Investors
I'm an active investor too, and bridge financing can help investors move quickly on a property while longer-term financing or a sale gets lined up. The investor bridge starts at a 620 credit score, and I'll walk you through how it fits your exit plan.
Let's Map Out Your Move
I'm Scottie Campbell, Mortgage Advisor and owner of Waymaker Mortgage Company in Georgetown, TX. I've been helping families make this exact move since 2003. Send me your current home's address, a rough idea of what's owed, and what you're hoping to buy, and we'll get you rocking and rolling. Feel free to text me.
Information on this page is general and educational. It is not a commitment to lend or an offer of credit. Programs, guidelines and eligibility change and depend on your full scenario. Waymaker Mortgage Company, NMLS 2440476. Equal Housing Lender.
Quick facts
- Loan type
- Short-term bridge financing secured by your current home
- Minimum credit score
- 680 primary residence; 620 investor bridge
- Repayment
- From the sale of your current home
- Best paired with
- Greenlight Approval for a non-contingent offer
- Common use
- Down payment and closing costs on your next home
Is this loan right for you?
Who it's for
- Move-up buyers with equity in their current home
- Buyers who want to make an offer not contingent on selling
- Families who want to move once instead of twice
- Real estate investors who need to act quickly (from 620 credit)
Who it may not fit
- Homeowners with little equity in their current home
- Sellers who can't comfortably carry two homes for a period if the sale runs long
- Buyers who can already qualify for the new home while keeping the old one
Pros and cons
Pros
- Buy before you sell and move once
- Supports a non-contingent offer when paired with a Greenlight Approval
- Uses equity you already have for the down payment
- Sell your current home without living through showings
Trade-offs to weigh
- Bridge financing adds its own costs
- Carrying two homes for a period if the sale takes longer
- Higher credit bar for primary residence bridges (680)
Frequently asked questions
What credit score do I need for a bridge loan?
For a buy-before-you-sell bridge on a primary residence, the minimum is 680. For an investor bridge loan, it's 620.
Can a bridge loan help me make a non-contingent offer?
Yes. That's one of its biggest advantages. When I pair a bridge loan with a Greenlight Approval, your file is pre-underwritten up front and your down payment is available without waiting on your sale, so your offer doesn't have to depend on selling your current home.
What happens if my current home takes a while to sell?
That's the main risk to plan for. Bridge loans are short-term, so we price your current home realistically, build in a cushion and make sure you're comfortable with the carrying costs before you commit.
Do I have to make payments on the bridge loan?
It depends on how the bridge is structured. Payment arrangements vary, and I'll show you exactly what each option looks like month to month so there are no surprises.
Is a HELOC a better option than a bridge loan?
Sometimes. If you open a HELOC on your current home before you list it, you can use it for your down payment. It has to be in place before the home goes on the market, though. I'll compare both with a Total Cost Analysis.
Can investors use a bridge loan?
Yes. Investor bridge financing starts at a 620 credit score and can help you move quickly on a property while a sale or longer-term financing gets lined up.
Related loan programs
Low down payment options, dozens of down payment assistance programs and a Greenlight Approval that helps your offer compete. It's never a no. It's always a how.
Flexible credit, low down payment, and dozens of assistance programs. I'll show you how FHA fits your plan, then you decide.
No monthly mortgage insurance, no minimum credit score on my end, and VA loans funded in house by Waymaker Mortgage Company with underwriting through multiple investors.
Last updated October 18, 2026 · Reviewed by Scottie Campbell, NMLS #1610726. This page is educational and not a commitment to lend; program details change — ask for current figures.