ServicesBridge Loans
Bridge Loans in Buda
Found the right house but haven't sold the one you're in? A bridge loan borrows against the equity you already have, so you can fund a down payment and close on the new place first. We start by mapping your sale timeline so the loan fits your move.
How a Bridge Loan Works and Who It Suits
Think of a bridge loan as a short-term loan backed by the property you own today. It carries you through the stretch between buying the next place and selling the current one. Once the old property closes, the money from that sale clears the bridge loan, and the only loan left is the mortgage on your new purchase.
We will tell you plainly if it is the wrong tool for you. Before we suggest one, we check how much equity you have, how fast comparable properties are moving, and whether your budget can handle two payments for a few months. In some cases a sale contingency, or a HELOC set up before the listing goes live, gets you there for less money. In others, a bridge loan is the clear winner, particularly when sellers are favoring buyers who don't need to sell first.
Borrowers in Buda and nearby towns such as Kyle and Dripping Springs can meet with us at our office or talk it through by phone and video.
What You Get When We Set Up Your Bridge Loan
An equity and timeline review
We estimate what your current property should sell for, subtract what you owe, and look at realistic days on market. That number tells us how much you can borrow and how long you may need it.
A written exit plan
Every bridge loan needs a clear way out. We write down the sale price you're counting on, the term of the loan and what happens if the sale runs long, so nothing about the ending is a surprise.
Coordination with your purchase mortgage
The bridge loan and the loan on your new place have to work together. We structure both so the down payment, closing date and monthly payments line up.
A plain-language payment breakdown
You'll see the expected monthly cost of carrying both properties, including any interest-only period, before you commit to anything.
A loan officer who stays with the file
The same person who reviews your numbers follows the loan through closing and answers your questions as your sale moves along.
When a Bridge Loan Might Be the Right Tool
Sellers are turning down contingent offers
When the market is tight, an offer that hinges on your sale tends to get passed over. Unlocking your equity ahead of time lets you offer terms sellers find easier to accept.
Your wealth is in the property, not the bank
You have built up real value in the place you own, yet your savings won't cover the next down payment. A bridge loan converts part of that value into cash you can bring to closing.
One move sounds better than two
Selling before you buy can mean a temporary rental, a storage unit and packing everything twice. Buying first lets you move straight in, then list a vacant property that shows more easily.
The for-sale sign is already up
Plenty of lenders decline to open a home equity line once a property is listed. A bridge loan is built for borrowers who are already on the market.
How Our Bridge Loan Process Works
- 1
A conversation about your move
We start with a phone or video call about where you are, where you're headed and when. This is where we figure out whether a bridge loan or another option fits best.
- 2
Pre-qualification and numbers
We review your income, credit and the equity in your current property, then show you how much you may be able to borrow and what both payments could look like.
- 3
Application and appraisal
Once you're ready, we take your loan application. The current property is usually appraised so the bridge amount rests on a real value, not a guess.
- 4
Closing on the new place
The bridge funds go toward your down payment and closing costs, and you close on your next property alongside the purchase mortgage.
- 5
Payoff when you sell
When your old property closes, the proceeds pay off the bridge loan at the title company. We stay in touch through your listing in case the plan needs adjusting.
What Shapes the Cost of a Bridge Loan
Bridge loans usually cost more than a standard mortgage because they are short-term and carry more risk. What you actually pay depends on your situation, which is why we price it after we understand it. You'll get rate quotes in writing before you apply.
- How much equity you have
- More equity means a lower loan-to-value ratio, which generally means better terms. Thin equity limits how much you can borrow.
- Length of the term
- A shorter term costs less overall. If your property is likely to sell quickly, you may not need a long runway.
- Interest-only versus regular payments
- Some bridge loans allow interest-only payments or let interest build until the sale. That eases monthly cash flow but changes the total cost.
- Your credit and debt load
- Lenders look at whether you can handle both payments if the sale takes longer. Strong credit and steady income help.
- Closing costs on two loans
- You may have appraisal, title and origination costs on both the bridge loan and the purchase mortgage. We list them line by line.
Bridge Loan Questions We Hear Often
Something not covered here? (512) 312-7947
What happens if my current property doesn't sell before the loan term ends?
That's the question we plan around from the first call. We set the term with some cushion based on realistic sale times, and we talk through options like a price adjustment or an extension before they're needed. If the numbers only work with a perfect sale, we'll tell you a bridge loan may not be wise.
Do I have to qualify with both mortgage payments?
Often, yes. Many lenders want to see that you could cover the old mortgage, the bridge loan and the new mortgage at the same time for a while. We'll run those numbers with you during pre-qualification so you know where you stand.
Is a bridge loan better than a HELOC?
It depends on timing. A HELOC is usually cheaper but generally has to be opened before you list. If you're already on the market or need a larger amount quickly, a bridge loan may be the better tool. Our HELOC page covers that option in more detail.
Can real estate investors use a bridge loan?
Some investors use bridge financing to buy a new property before selling another. If the purchase is a fix-and-flip or the property won't qualify for standard financing, our hard money loans may suit the deal better.
How much can I borrow?
The amount is based mostly on the equity in your current property, the appraised value and your overall finances. We'll give you a realistic figure after reviewing those details, not a rough guess.
Ready to Buy Before You Sell?
Tell us about the property you own and the one you want. We'll look at your equity and timeline, then help you decide if a bridge loan is the right fit.