Buying and Selling at the Same Time? Let’s Talk Bridge Financing 

So you’re buying a new home, but your closing date on the old house is after the new one. That can feel a little nerve-wracking—but don’t worry. There’s a solution for that.

It’s called bridge financing.

Here’s how it works:

Because your down payment is actually tied up in the sale of your current home, you won’t have access to it until that sale closes. Bridge financing is when your new lender temporarily lends you that money—for the down payment on your new place, and sometimes even for closing costs.

Then, once your old house closes and you have the funds in hand, you pay off the bridge loan.

Two Catches to Keep in Mind

1. You need a firm sale on your old house.
You can’t get a bridge loan if your existing home isn’t firmly sold. The lender needs that guarantee that the money is actually coming.

2. You’ll be carrying both mortgages for a bit.
A lot of people think that once their new house closes, they’re done. But remember, your old mortgage doesn’t get discharged until that sale closes. That means you’ll have both mortgages to cover for a short time.

How long does a bridge last?

Most bridge loans are short-term—usually 2 to 14 days. But I’ve seen them go up to 90 days. In those cases, the homeowner needed to budget for both mortgage payments during that entire time.

Buying and selling at the same time can feel complicated, but it doesn’t have to be overwhelming. I’m here to help make sure you’re ready for every step.