- Four proven strategies: bridge loan, contingency offer, HELOCand dual mortgage
- Bridge loans let you buy first, sell later — typically 6–12 month terms
- Bridge loan rates run 1–2% above conventional (~8–10% currently)
- A HELOC lets you tap existing equity before listing your current home
- Many buyers qualify for two mortgages — rental income can offset your current payment
- Pre-qualify before listing so you can move fast in competitive markets
A bridge loan is a short-term mortgage (typically 6–12 months) that lets you borrow against your current home's equity to fund the down payment on your next home — so you can close on a new property before selling your existing one. Bridge loans typically carry rates 1–2% above conventional (approximately 8–10% in 2026).
- Bridge loans let you buy before you sell — using your current home's equity
- Home sale contingencies protect you but can weaken offers in competitive markets
- A HELOC before listing provides flexible access to equity with no rush to sell
- Bridge loan rates typically run 8–10% in the current environment
- Most buyers qualify for two mortgages simultaneously if the math supports it
- Dustin can pre-qualify you in 90 minutes to understand all your options
- Bridge loans let you close on a new home before selling — using your existing equity
- A home sale contingency protects you but can weaken your offer in competitive markets
- A HELOC tapped before listing can serve as a bridge without bridge loan rates
- Bridge loan rates typically run 1–2% above conventional (approximately 8–10% today)
- Many clients qualify for two mortgages simultaneously with strong DTI
- Pre-qualify in 90 minutes to know exactly what you can offer before you list
You've outgrown your current home. Maybe your family has grown, your income has increasedor you've simply found the property you want to spend the next chapter of your life in. The dream home is within reach — but the logistics of buying and selling simultaneously can feel overwhelming.
The good news: Dustin Carlson has helped thousands of move-up buyers navigate this exact situation over 25+ years. There are more paths forward than most people realizeand the right one depends on your equity position, income and the market you're buying and selling in.
📌 The core challenge: You need money from your current home's sale for the new home's down payment — but you may need to buy before your home sells. The strategies below solve this problem.
What Does a Bridge Loan Cost?
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Dustin Carlson · NMLS #193009 · First Colony Mortgage · NMLS #3112
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Bridge loans offer tremendous flexibility, but they come at a price. Understanding the typical costs helps you decide whether a bridge loan makes financial sense for your situation.
| Cost Component | Typical Range | Notes |
|---|---|---|
| Interest Rate | 8.0–10.0% (2026) | Roughly 1–2% above conventional rates |
| Origination Fee | 1.0–2.0% of loan amount | Paid at closing; often rolled in |
| Loan Term | 6–12 months typical | Some lenders offer up to 24 months |
| Max LTV | 70–80% of current home value | Lender typically requires 20–30% equity cushion |
| Prepayment Penalty | Usually none | Most bridge loans have no prepayment penalty |
| Closing Costs | 2–3% of loan amount | Appraisal, title, lender fees |
💡 Example: On a $200,000 bridge loan at 9.0% for 6 months, your interest cost is approximately $9,000 — a modest cost for the ability to close on your dream home without a contingency or a rushed sale.
Bridge loan terms vary significantly between lenders. Dustin structures bridge loans to align with your expected sale timeline, often with interest-only payments so cash flow stays manageable.
Get a Personalized Bridge Loan Quote
Every bridge loan is different. Dustin will review your current home equity, target purchase price and expected sale timeline to build a custom bridge loan strategy — at no cost to you.
Get My Bridge Loan Quote →Dustin Carlson NMLS #193009 · First Colony Mortgage Corporation NMLS #3112
Your Four Primary Strategies
Bridge Loan
Borrow against your current home's equity now. Use those funds as the down payment on your new home. Pay off the bridge loan when your home sells.
Best for: Strong equity, competitive marketHome Sale Contingency
Make your purchase offer contingent on your current home selling first. Protects you from two mortgages but can weaken your offer in hot markets.
Best for: Buyer's markets, lower pressureHELOC Before Listing
Open a home equity line of credit on your current property before listing it. Use available funds for the down payment. Close the HELOC when the home sells.
Best for: Qualified borrowers with timeCarry Both Mortgages
If your income qualifies, carry both mortgages simultaneously — purchase the new home, then sell the old one on your timeline with zero pressure.
Best for: High-income buyers, short overlapStrategy 1: Bridge Loans — The Most Flexible Solution
A bridge loan is a short-term mortgage (typically 6–12 months) that lets you access your current home's equity before it sells. This solves the timing problem entirely — you can make a clean, non-contingent offer on your dream home while your current home goes through the listing and sale process.
How Bridge Loans Work
- You borrow against your current home's equity (typically up to 80% of its value, minus any existing mortgage)
- Those funds become your down payment on the new home
- You close on the new home without needing to sell first
- Your current home sells — you use the proceeds to pay off the bridge loan
- The bridge loan typically carries a slightly higher interest rate, but the term is short
💡 Example: Your current home is worth $500,000 with a $200,000 mortgage. You have $300,000 in equity. A bridge loan gives you access to $200,000 (80% of value minus mortgage), which you use as the down payment on a $800,000 dream home. After your home sells, you pay off the bridge with $300,000 in sale proceeds — keeping $100,000 in your pocket.
What Does a Bridge Loan Cost?
Bridge loans are a powerful tool, but it's important to understand their pricing before committing. Here's what to expect in the current rate environment:
💡 Bridge Loan Rate Range (2026): Bridge loans typically carry interest rates 1–2% higher than conventional mortgage rates. In today's market, that means approximately 8–10% interest, depending on your credit profile, loan amountand lender.
Bridge Loan Cost Breakdown
| Cost Component | Typical Range | Notes |
|---|---|---|
| Interest Rate | 8% – 10% | 1–2% above conventional; often interest-only during bridge period |
| Origination Fee | 1% – 2% of loan | Charged at closing; sometimes rolled into the loan |
| Appraisal | $500 – $1,000 | Required to establish current home's equity |
| Loan Term | 6 – 12 months | Repaid in full when current home sells |
| LTV Limit | Up to 80% | Based on current home's appraised value |
| Monthly Payments | Interest-only | Keep payments manageable while you carry both properties |
While bridge loan rates are higher than a standard 30-year mortgage, the total cost is typically modest because the loan is only outstanding for a few months. On a $300,000 bridge loan at 9%, you'd pay roughly $2,250/month in interest — a small price to avoid the stress of a contingency offer in a seller's market.
📞 Terms vary by lender, loan sizeand credit profile. Contact Dustin Carlson directly for a personalized bridge loan quote with First Colony Mortgage.
Get a Personalized Bridge Loan Quote
Dustin structures bridge loans to fit your timeline and budget — with clear numbers so you can make a confident decision.
📞 Call (281) 939-5191Dustin Carlson NMLS #193009 · First Colony Mortgage NMLS #3112
What Does a Bridge Loan Cost?
Bridge loans are powerful tools, but they come with a premium. Because they're short-term, higher-risk instruments — typically 6–12 months — lenders charge above-market rates. Here's what to expect in the current environment:
📌 Bridge Loan Rate Ranges (2026): Rates typically run 1–2% above conventional 30-year rates, placing them in the 8–10% range in the current interest rate environment. Terms and fees vary by lender.
| Cost Component | Typical Range | Notes |
|---|---|---|
| Interest Rate | 8.0% – 10.5% | Higher than conventional — short-term premium |
| Origination Fee | 1.0% – 2.0% | Of loan amount, paid at closing |
| Loan Term | 6 – 12 months | Designed to bridge the gap, not long-term |
| LTV / Equity Required | Up to 80% CLTV | Based on current home's appraised value |
| Prepayment Penalty | Usually none | Most bridge loans are freely prepayable |
| Appraisal & Closing Costs | $1,500 – $3,000 | Similar to a standard mortgage |
The short-term nature of bridge loans means the total cost is relatively contained — even at 9%, holding a bridge loan for 4 months on a $200,000 balance costs roughly $10,000+in interest. For many move-up buyers, that's a worthwhile price for certainty and timing flexibility.
The real question isn't whether a bridge loan costs more — it's whether it saves you more. If a bridge loan lets you negotiate from strength and avoid contingencies, you may win a home at a better price than you'd pay in a bidding war as a contingent buyer.
Get a Personalized Bridge Loan Quote
Every bridge loan situation is unique. Dustin Carlson will analyze your current equity, target purchase price and timeline to find the right structure for your move.
Get My Bridge Loan Quote → /span>Contact Dustin to confirm availability in your specific state, as he is licensed in many states across the nation — contact Dustin to confirm availability in your specific state." If your home doesn't sell in time, you can typically exit the contract without penalty.
Pros and Cons
| Advantage | Disadvantage |
|---|---|
| No risk of carrying two mortgages | Sellers may reject or counter contingent offers |
| Protected if your home takes longer to sell | You may lose the dream home to a non-contingent buyer |
| No additional loan costs | Creates pressure to sell quickly at lower price |
| Simple structure | Stressful timing coordination |
In competitive markets, sellers often won't accept contingent offers — or will require a "kick-out clause" allowing them to continue marketing the home and give you 72 hours notice to remove the contingency if another buyer appears. This is where bridge financing becomes far more powerful.
Strategy 3: HELOC Before You List
A Home Equity Line of Credit (HELOC) is a revolving credit line secured by your current home. If you open one before you list the home for sale, you can draw from it for the down payment on your new home — then pay it off when the sale closes.
Important: Most lenders will freeze or close a HELOC once a home goes under contract for sale. This is why timing matters — the HELOC needs to be opened and available before you list. Dustin can guide you on the right sequence.
The Move-Up Timeline That Works
Get Pre-Qualified First — Before Any Other Step
Meet with Dustin to understand your buying power, equity accessand which strategy fits your situation. This takes under 90 minutes and costs nothing. Everything flows from this conversation.
Establish Your Financing Structure
Based on your pre-qualification, Dustin structures your financing — bridge loan, HELOC, contingencyor dual qualification. You now know exactly how much you can offer on the new home.
Find Your Dream Home (With Full Buying Power)
Armed with a strong pre-qualification and a clear financing structure, you shop for your new home with confidence — able to make clean offers when you find the right property.
List Your Current Home
List strategically — ideally with a closing date that coordinates with your new home's closing. Dustin and your real estate agent coordinate to align both timelines.
Coordinate Both Closings
With experience and in-house underwriting, First Colony Mortgage can close loans fast — sometimes in as few as 10 days when needed. This gives you maximum flexibility on timing both transactions.
Can I Qualify for Two Mortgages at Once?
Yes — if your income supports it. Dustin will calculate your debt-to-income ratio with both mortgage payments included. Many move-up buyers are surprised to find they qualify for both, especially if the overlap period is short (1–3 months). This is the cleanest solution — no bridge loan, no contingency, no timing pressure.
If you can carry both mortgages, you get to sell your current home on your terms — not under deadline pressure — which often means a better sale price.
What If the Market is Competitive?
In a seller's market where good homes receive multiple offers within days, contingent offers are often rejected outright. The solution is to eliminate the contingency through bridge financing or HELOC access — giving your offer the same strength as a cash buyer. Sellers care about certainty of closing, not just purchase price.
💡 Dustin's move-up insight: "The buyers who lose their dream home almost always made the same mistake: they waited until after they found the home to figure out financing. The buyers who win have their financing structure in place first. Call me before you start looking — not after."
Ready to Upgrade to Your Dream Home?
Dustin Carlson has guided thousands of move-up buyers through the buy-sell transition over 25+ years. Get pre-qualified in under 90 minutes and know exactly what you can offer before you fall in love with a home.
Talk to Dustin About Your Move-Up →Dustin Carlson NMLS #193009 · First Colony Mortgage Corporation NMLS #3112 · Equal Housing Opportunity Lender · Licensed Nationwide