Buy Before You Sell
Bridge Loans
A bridge loan is a short-term financing solution that allows homeowners to tap into the equity of their current property and use it toward the purchase of a new home. This option gives you the freedom to buy your next home without having to wait for your existing property to sell, making the moving process smoother and less stressful.
Benefits
- Buy Before You Sell – Secure your next home without waiting to sell your current one.
- 0% Interest & $0 Payments – The best bridge loan programs offer interest-free options with no monthly payments on down payment funds.
- Fast Closing – Close in as little as 21 days, giving you a strong advantage in competitive markets.
- Extended Selling Window – Enjoy up to 4 months after purchasing your new home to sell your existing property.
Eligibility
- Borrow up to 75% loan-to-value (LTV) of your current home’s value.
- Loan amounts available from $200,000 to $2.5 million.
- Must demonstrate sufficient equity in your departing residence.
- Available for primary residences only.
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What Is a Bridge Loan?
A bridge loan is a short-term financing solution that lets you unlock the equity in your current home and use it toward the purchase of your next property. This means you can buy before you sell, while also excluding your existing housing expenses when qualifying for your new mortgage.
Many homeowners prefer this option because it avoids the hassle of moving twice or dealing with the uncertainty of temporary housing. With traditional financing, buying before selling can be difficult since most buyers would need to qualify for two mortgages at once or free up equity from their current home. A bridge loan solves both challenges, giving you access to your equity right away without having to sell first.
Instead of keeping your equity tied up, let it work for you. With our bridge loan solutions, you can secure your dream home first and sell later—while still enjoying the right loan size, interest rate, and monthly payment from day one.
How Does a Bridge Loan Work?
Bridge loans can sometimes feel overwhelming, especially since there are many different products available. While Jeremy Boillot offers multiple solutions, here we’ll focus on the most popular option: the 0% interest, $0 payment bridge loan.
With this low-cost program, Jeremy partners with a trusted outside investor to provide one of the easiest and most affordable bridge loan solutions. The available loan amount is calculated based on the total value of your current property, and you won’t need to pay off your existing mortgage until your home is sold.
After a quick review of your financial profile, the bridge lending partner will issue a pre-qualification letter for your new purchase. This review typically includes:
Confirmation of your credit score and debts tied to your current property
An estimated value and projected sale price, usually provided by your Realtor
Once approved, you can start making offers right away and include the bridge loan amount as part of your down payment. This makes your offer appear stronger and more competitive to sellers and listing agents.
For this program, the lender calculates the loan amount by taking 75% of your home’s projected sale price, then subtracting any existing debts such as your mortgage, home equity loans, or liens (e.g., solar).
If this option still doesn’t cover the funds you need, Jeremy also works with several other bridge lending partners. These alternatives may carry higher rates and fees, but they provide flexibility for different financial situations.
Example Bridge Loan Scenario
Expected Sale Price: $1,000,000
75% Value Adjustment: $750,000
Current Mortgage Balance: $300,000
Bridge Loan Amount Available: $450,000
(Calculated as $750,000 adjusted value – $300,000 mortgage balance)
New Home Purchase
Non-Contingent Offers
New Home Price: $1,600,000
Bridge Loan Funds: $450,000
Purchase Loan from Jeremy Boillot: $1,150,000
In this scenario, the bridge loan unlocks $450,000 from the equity in your current home, which you can use toward the down payment on your new property. The remaining $1,150,000 is financed through a standard purchase loan arranged by Jeremy Boillot.
This structure allows you to buy your dream home without waiting to sell your current one first — giving you flexibility, stronger offers, and peace of mind.
After the Purchase
Once your old home sells, here’s how the numbers typically work out:
Sale of Current Home
Sale Price: $1,000,000
Deductions from Sale Proceeds
Bridge Loan Repayment: $450,000
Bridge Loan Service Fee (2.4%): $24,000
Existing Mortgage Payoff: $300,000
Realtor Commissions & Sale Costs (estimated 6%): $60,000
Final Net Sale Proceeds: $166,000
After paying off the bridge loan, service fees, existing mortgage, and transaction costs, you walk away with $166,000 in net proceeds—all while already settled into your new home.
Bridge Loan Interest Rates and Fees
With our bridge loan program, you enjoy 0% interest and $0 monthly payments while selling your existing home. This creates a huge advantage compared to traditional bridge loans, which often come with 10%+ interest rates and 1.5%–2% upfront origination fees.
Instead of paying out of pocket, you’ll simply pay a 2.4% service fee from the sale proceeds of your home once it sells. That means you get the funds you need for your new home’s down payment without draining your savings upfront.
After the first 90 days, prorated holding costs (such as bridge loan interest, property taxes, insurance, and other ownership costs) will begin to accrue. However, these are not due monthly—they are deducted from your sale proceeds once your home closes.
Pros and Cons of Bridge Loans
Fast Closing Timeline
With our bridge partners, you can leverage Jeremy Boillot’s Fast 14-Day Close, giving you the power to write aggressive offers and stand out in today’s competitive housing market.
Buy Before You Sell
Avoid the stress of selling first, moving into temporary housing, or juggling two closings. A bridge loan allows you to secure your dream home before listing your current property.
No Double Payments
You won’t need to worry about making two monthly mortgage payments at once. With the 0% bridge loan program, you pay no interest or monthly fees until your current home sells.
Access Home Equity
Use the equity from your existing home immediately as a down payment, without waiting for it to sell. This makes you a stronger buyer with more cash in hand.
Flexible Repayment
You have up to 7 months to sell your existing home, giving you plenty of time to maximize your sale price without pressure.
When applying for a traditional loan, most lenders require that you sell your current home first so they can exclude your existing mortgage payment from your debt-to-income ratio. This forces many buyers to write a contingent offer, meaning the new home purchase is dependent on the successful sale of their current property.
The challenge is that in competitive real estate markets, contingent offers are rarely attractive to sellers. A home sale contingency introduces risk, since sellers must wait for another transaction to close before they can move forward. In hot markets, sellers often receive multiple strong offers, making it unlikely they will choose one tied to another home’s sale.
This is where a bridge loan becomes a powerful tool. By tapping into the equity of your existing home without requiring it to be sold first, bridge financing allows you to:
Write non-contingent offers that sellers take more seriously.
Compete with cash buyers and stand out in multiple-offer situations.
Avoid the stress and delays that come with waiting for your home to sell.
In short, bridge loans give buyers the freedom to purchase a new home before selling their current one, making their offers stronger, faster, and more competitive.
Lenient Approval Guidelines
One of the key advantages of bridge loans is their flexible qualification process. Unlike traditional mortgage lenders, who must strictly follow federal “ability to repay” requirements, bridge lenders primarily evaluate the equity in your current home when determining eligibility.
This means you won’t face the same rigid income, asset, and credit requirements that traditional lenders enforce. While bridge lenders will still review your overall financial profile, they have more freedom to make exceptions and approvals based on your home equity position. This opens the door for more buyers—especially those who may not neatly fit into traditional lending boxes.
More Convenient Than Moving Twice
Without bridge financing, many homebuyers are forced into an inconvenient moving timeline:
Sell their current home.
Move into temporary housing.
Buy their new home.
Move again into the permanent residence.
This process is stressful, expensive, and time-consuming.
A bridge loan eliminates this hassle by allowing you to buy your new home first, move in at your own pace, and then sell your existing property afterward. You avoid the disruption of moving multiple times and gain more control over your home sale timeline—without the pressure of rushing into the wrong deal just to meet financing requirements.
Cons of Bridge Loans
Fees for the Service
As the saying goes, there’s no such thing as a “free lunch.” While bridge financing offers incredible flexibility, it does come with a cost. With our program, you’ll pay a 2.4% service fee based on the sale price of your current home, once it sells.
The big advantage, however, is that you pay nothing upfront—no monthly interest, no out-of-pocket fees, and no ongoing payments while you work to sell your property. This makes the process much more affordable compared to traditional bridge loans.
Traditional Bridge Loan Options
For buyers who need more flexibility, Jeremy Boillot also provides traditional bridge loan options. These typically come with:
1.5% – 2% upfront fees
Monthly interest charges until your current home is sold and the bridge loan is fully repaid
While these traditional programs can offer additional purchasing power, they are usually more costly and less cash-flow friendly compared to our zero-interest bridge loan solution.
One potential drawback of a bridge loan is that, until your old property sells, you may be responsible for two monthly mortgage payments—the mortgage on your current home and the new mortgage. For most buyers, this is only a short-term challenge since the average home sells within 3–4 months. Still, it’s important to plan ahead and budget accordingly.
Requires Substantial Equity for Approval
Bridge lenders use a 25% value adjustment when calculating the available loan amount. Because of this, buyers typically need 30% or more equity in their current home to qualify.
This means homeowners who purchased recently, or who haven’t built up enough equity yet, may not be able to access this program until more value has accrued in their property.
Bridge Loan Alternatives
Other Hard Money Bridge Loan Alternatives
Jeremy Boillot has numerous investors who offer their own variation of bridge financing, with small nuances and exceptions. For the sake of brevity, the above descriptions focus primarily on our 0% interest, $0 payment bridge loan partner. However, if your situation does not fit their box, do not fret! If you have even 10% – 20% equity available in your current home, we have alternative options available for you. Reach out to our team to learn more.
Sell First with a Seller Rent-Back
When you are looking to sell your home, you will often be able to negotiate additional items into the contract with the buyer. One common stipulation is asking the buyer for a seller rent-back, where you delay your move-out date and rent the property back from the buyers for a set amount of time.If the buyer is purchasing your home using owner-occupied mortgage financing, you can only ask them for a maximum rent-back of 59 days since loan guidelines require them to occupy the property within 60 days after closing. If the buyer uses an investment loan, or purchases the home all-cash, you can negotiate a much longer rent-back period, which could give you all the time you need to find and buy your new home.
While this may put a hard deadline on your home search, this is often the cheapest and most convenient option for homeowners looking to upgrade in their move without moving twice. To take advantage of this route, you can enter the process well-prepared by obtaining a Jeremy Boillot pre-underwritten pre-approval letter before selling your existing home, so that you are immediately ready to buy the next one.
A fully pre-underwritten pre-approval will ensure you’re able to start offering on new homes as soon as the buyers are ready to close escrow on your home.
Departing Rental Income
If you cannot qualify with both housing payments in full, you can rent your current primary residence to offset some of the monthly expenses you have on that home. All you will need from the renter is a signed lease agreement and a security deposit prior to closing on your new purchase.
This added rental income can help make qualification more realistic given that you’ll still be responsible for two mortgage payments. Finding a renter on such short notice might be a challenge, but you can start collecting rental applications as soon as you are pre-approved through Jeremy Boillot for your new home purchase.
Home Equity Line of Credit (HELOC) or Home Equity Loan (HELOAN)
HELOCs and HELOANs are second mortgage loans that allow you to tap into your current property’s equity. These options offer lower interest rates than hard money loans, lower closing costs than hard money loans, and a longer timespan to repay the balance. Some HELOCs may include negligible prepayment penalties for loans that are closed within a certain period of opening.
The drawback of either option is that this is yet another additional monthly liability to account for, so borrowers who cannot qualify with both housing payments will not be able to use this solution. Jumbo loans can be particularly strict on newly opened HELOCs, limiting buyers from targeting the most aggressive rate options for jumbo loans. For guidance and approval, you can reach out to Jeremy Boillot for personalized advice.
Is a Bridge Loan Right for You?
There is no one-size-fits-all solution for mortgage financing. The best way to determine whether a bridge loan is the right fit for you is to connect with Jeremy Boillot. With deep expertise in mortgage lending, Jeremy can walk you through monthly payment scenarios, provide the latest interest rate options, and answer any questions or concerns you may have.