ServicesBridge Loans
Bridge Loans in Elgin, TX
Buying before you sell is easier when the equity in your current property can fund the next down payment. A bridge loan does that for a few months. We put the rate, fees, term and payoff plan in writing, so you can weigh it against waiting, a HELOC or a contingent offer.
What bridge financing is and who it suits
Bridge financing is a short-term loan, counted in months, with the property you are moving out of as collateral. Its funds usually pay the down payment and closing costs on the purchase, and the full balance comes due in a single payment once the old property sells. The new purchase itself is typically financed on its own with a standard home loan, such as one of our conventional loans.
This tool solves a timing gap, not an income gap. It fits when a seller refuses an offer tied to your sale, or when you would rather move once than rent in between. It fits poorly when your current property may sit unsold or carries little equity, since the sale is the only planned way to repay it. We will tell you honestly where you stand before you apply.
What our bridge loan work covers
- 01
Equity and loan-to-value check
We estimate the market value of the property you own, subtract what you still owe, and calculate how much of that equity a bridge loan can tap. Lenders limit combined loan-to-value, and that limit decides how large a down payment you can bring.
- 02
Terms on paper first
Before you commit, you receive the rate, origination charges, appraisal and title costs, term and payoff conditions in writing. If anything shifts during underwriting, you get the reason in writing as well.
- 03
Choice of payment structure
Some bridge loans bill interest-only each month, while others let interest build and collect it at payoff. We price both, so you can see the effect on your monthly budget while you carry two properties.
- 04
Fitting the two loans together
Underwriting reviews the bridge loan and your new mortgage as one picture of your debts. Our loan officer schedules both closings so the down payment money is ready when you sign.
- 05
Clean payoff when you sell
At the sale of your departing property, the title company settles the bridge balance out of your proceeds. We confirm that payoff amount in advance so the lien is released without loose ends.
Questions about Bridge Loans?
Call(512) 601-0828Signs a bridge loan could fix your timing
The seller won't take a sale contingency
Plenty of sellers refuse to wait on another sale. Bridge funds let you make a clean, non-contingent offer with a real down payment behind it.
Your cash is tied up in equity
Your current property has built up value, yet your savings account is modest. A bridge loan turns that value into spendable funds before the sale.
You'd rather move one time
Selling first can mean a temporary lease, a storage unit and a second moving day. Buying first lets you move straight across and list an empty, staged property.
A relocation set your start date
A job move into or out of the Elgin area seldom matches a buyer's calendar. Bridging keeps your start date independent of the sale.
Your listing is ready to go
These loans work best when the sale is close. A well-priced, market-ready property keeps the term short and the interest small.
Steps from first call to payoff
- 1
Review both properties
By phone, on video or at our office, we go over your current mortgage balance, estimated value, income and target purchase price. Those numbers show whether a bridge loan, a HELOC or a different route makes more sense.
- 2
Get the side-by-side quote
You receive the bridge loan and the purchase loan together in writing, with each fee broken out. We show total interest across several sale timelines, including slower ones.
- 3
Appraisal and underwriting
An appraiser values your current property to confirm the equity. Underwriting then checks credit, income and debt-to-income with every payment included, using one clear document list.
- 4
Close on the purchase
Bridge funds cover your down payment and the purchase loan closes. You move into the new place when it suits you.
- 5
Sell and settle
Once the departing property closes, its sale proceeds retire the bridge balance and the lien comes off the title.
What sets the price of bridge financing
Expect a higher rate than a 30-year mortgage. The loan only runs for a few months, and its repayment depends on a sale that has not happened yet. In practice, how many months the loan stays open drives your total cost more than the rate does. Each item below appears as its own line in the written quote we give you.
- Combined loan-to-value
- The more equity left after both liens, the less exposure the lender carries, and pricing usually improves. When equity is thin, both the amount you can borrow and the terms tighten.
- Time on the market
- Interest builds for every month the loan is outstanding. A sale that closes in six weeks is far cheaper to bridge than a listing that lingers for a season.
- Transaction fees
- You will see origination charges, an appraisal of the property you are leaving, plus title and recording fees. Every one is listed in writing up front, so nothing shows up new on the closing statement.
- Credit and debt-to-income
- Your current mortgage, the new mortgage and the bridge obligation are all counted together. Higher scores and more room in your income open up better options.
- How interest is paid
- Paying interest monthly costs a different total than letting it accrue and settling it at the sale. Your quote shows both versions side by side.
Bridge loan questions
What if my current property has not sold when the term runs out?
That is the central risk, and we cover it before any application. Depending on the lender, an extension or a refinance may be possible, but neither is guaranteed and both cost more. That is why we look at your list price and local market conditions at the very start.
Can I qualify with two mortgages at once?
It is possible. Both payments go into your debt-to-income ratio, so your income needs to carry the overlap. Certain programs give credit when the departing property already has a signed contract, and we check whether that applies to your file.
Would a HELOC cost me less?
In some cases, yes. A HELOC opened before you list can be cheaper, but once a property is on the market, a lot of lenders decline to open a line against it. We put both options in writing so the cost difference is plain.
Do real estate investors use bridge loans?
They do. Investors buying properties that need work often lean toward hard money loans, because those are underwritten mainly on the property rather than the borrower. We can walk through which structure suits your deal.
How long does a bridge loan take to close?
Most of the timeline depends on the appraisal and how quickly you return documents. Once we review your file, we give you a realistic schedule in writing instead of a date we cannot stand behind.
See whether a bridge loan fits your move
Give us the basics on the property you have now and the one you are shopping for. We will run the figures with you, and if bridging makes sense, we can begin your application during that same conversation.