How an Equity Bridge Loan Helps You Buy Before You Sell
Without an equity bridge loan, buying a new home while still owning your current one can feel like trying to leap across a canyon without a bridge. You need access to your home equity for a down payment—but you can’t access it until you sell.
If that’s your situation, you’re not alone. Many families are stuck in this tricky transition. That’s where the Instant Equity Bridge Loan becomes a lifeline.
This smart solution helps you unlock your equity early, so you can make a non-contingent offer on your next home—and move forward with confidence.
A Real-Life Scenario: The Martins’ Home Buying Dilemma
Let’s imagine the Martins—a growing family of five. Their current home served them well when the kids were little, but now it’s tight. Sharing bedrooms and limited storage is taking a toll on everyone.
They find a perfect new home: more space, a better school district, and a backyard made for summer BBQs. But like many families, their equity is tied up in their current home, and they don’t have the funds available for a down payment—yet.
Every offer they submit must be contingent on selling their home first, and in a competitive market, that puts them at a serious disadvantage.
That’s when they discover the Equity Bridge Loan.
Why Contingent Offers Are Risky
In today’s fast-paced real estate environment, sellers aren’t keen on waiting.
“Sellers are much more likely to take a non-contingent offer, even if it’s for a lower price,” says Nathan Jennison of The Mortgage Architects. “That’s why we created a program to help buyers unlock the equity in their existing home before they sell.”
The Martins used the Equity Bridge Loan to tap into their home equity before listing their house, making them non-contingent buyers with strong offers.
What is an Equity Bridge Loan?
An equity bridge loan lets you borrow against the equity in your current home before you sell it. This gives you the cash you need for the down payment and closing costs on a new home—without waiting for your old home to sell.
Key Features:
- No monthly payments required
- Access equity from a listed or unlisted property
- Use alongside other programs like the Guaranteed Backup Contract
- Strengthen your purchase offers and speed up your timeline
How the Process Works
Here’s how you can make your move seamless with an equity bridge loan:
- Get Pre-Approved
First, you’ll get pre-approved for your new mortgage and the equity bridge loan with The Mortgage Architects. - Shop Without Contingencies
You’re now ready to make non-contingent offers that stand out in a seller’s market. - Close on the Bridge Loan
About 4 days before your new home purchase, the bridge loan is funded—giving you the cash needed to close. - Move In First, Sell After
You move into your new home, then list your previous home for sale without the pressure of a rushed timeline. - Pay Off the Bridge Loan at Sale
When your current home sells, the proceeds pay off the bridge loan—done and done.
How Much Does It Cost?
Let’s walk through a typical example for a $200,000 equity bridge loan:
Cost Breakdown:
- Lender Fee:
- 2% (if in first position) = $4,000
- 2.5% (if in second position) = $5,000
- Interest:
- 10% annual rate
- About $1,642 for 30 days
- Origination Fee:
- Waived if The Mortgage Architects handles your purchase mortgage
- Otherwise, 1% ($2,000 on $200,000)
Estimated Total:
$5,642 – $8,642, depending on loan position and timing.
While this isn’t a free service, it’s often a small price to pay to avoid losing your dream home or carrying double housing costs from moving into temporary lodging.
Equity Bridge Loan Frequently Asked Questions
What types of homes qualify?
Your current home can be:
- Listed
- Unlisted
- Under contract
This program is flexible.
Are there monthly payments?
No monthly payments are required. Interest accrues and is paid off when your current home sells.
How long can I keep the loan?
This is meant to be a short-term loan—typically used for 30–90 days.
Can I use this with other offers?
Yes! Pair it with:
- Guaranteed Backup Contract
- Cash Offer Loan Program These combinations help you negotiate from the strongest possible position.
Why This Matters: The Martins’ Win
With their bridge loan in place, the Martins made a strong offer on the perfect home—and won. They moved in stress-free, then listed their previous home once they were comfortably settled.
Thanks to the Instant Equity Bridge Loan:
✅ They didn’t have to move twice
✅ They avoided contingent offers
✅ They accessed their equity when they needed it most
Final Thoughts from Nathan Jennison
“This is another way The Mortgage Architects help you move forward. We help you negotiate from a stronger position and transition homes in a way that’s convenient and cost-effective.”
If you’re caught in the in-between of buying and selling, the Equity Bridge Loan might be the smartest step you take.
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