How Bridge Loans Work in Washington: A Simple Guide for Homeowners Buying & Selling at the Same
Buying a new home while your current one hasn’t sold yet can feel stressful — especially when you’re worried about carrying two mortgages at the same time. That’s where bridge loans come in.
A bridge loan is a short-term loan that allows you to tap into the equity of your current home before it sells, making it possible to buy your next home first. It creates breathing room, flexibility, and smoother timing for homeowners navigating a move-up purchase.
After helping many Washington sellers through this process, I’ve seen bridge loans work beautifully when used strategically. This guide breaks down what they are, when they make sense, and how they actually work in real life.
1. What Is a Bridge Loan?
A bridge loan is a short-term, interest-only loan that lets you borrow against the equity in your current home before it sells.
You can use this money for:
Your down payment
Closing costs
Moving expenses
Strengthening your offer on a new home
Essentially, it “bridges” the gap between selling your current home and buying your next one.
How long does a bridge loan last?
Typically 3 to 12 months, depending on the lender.
When is the loan paid off?
Once your current home sells — the bridge loan is paid off with those sale proceeds.
2. Who Are Bridge Loans Best For?
Bridge loans work especially well for:
1. Move-up buyers
Homeowners who want a larger or newer home, but need their equity to purchase.
2. Sellers who don’t want temporary housing
This avoids having to move out, rent, and then buy again.
3. Buyers who found “the one” before listing
When the perfect home hits the market, timing matters.
4. Military families relocating with PCS orders
Bridge loans can help families secure housing near JBLM before their current home sells.
For JBLM commute clarity:
Housing Near JBLM: The Best Cities, Commutes & Neighborhoods for Military Families
5. Sellers in strong markets who expect a quick sale
If your home is likely to sell quickly, bridge financing creates freedom and flexibility.
3. How Bridge Loans Actually Work (Simple Breakdown)
Here is the step-by-step flow:
Step 1: Apply for a bridge loan
Your lender looks at:
Your home value
Your remaining mortgage
Your available equity
Your debt-to-income ratio
Step 2: Get loan approval & receive funds
You can use the funds for your new home’s down payment or costs.
Step 3: Buy your next home
Your offer looks stronger because:
You’re not contingent on selling
You have cash in hand
Your financing terms are clear
Step 4: List your current home after you move
No showings while living there.
No rushing the preparation.
No pressure on staging, cleaning, or scheduling.
Step 5: Sell your current home & pay off the bridge loan
Once the home closes, the bridge loan is paid back immediately with proceeds.
4. How Much Money Can You Borrow?
The amount depends on your equity.
Example:
If your current home is worth $600,000 and you owe $300,000, you have $300,000 in equity.
A bridge loan may allow access to:
60% to 80% of that equity
Minus fees and interest
Every lender varies, but this gives you enough to put a competitive down payment on your next home.
5. What Are the Pros of Using a Bridge Loan?
1. Avoid carrying two full mortgages
You’re not stuck paying two large monthly payments — many bridge loans are interest-only.
2. Make a stronger offer
You don’t have to write a home sale contingency, which often weakens your offer in competitive Washington markets.
3. Move once
No temporary housing.
No storing your belongings.
No rushing.
4. Stage and sell your home empty
This often leads to faster sales and higher prices.
5. Buy before competitors
If your dream home comes up, you don’t have to wait until your home sells.
6. What Are the Cons of Using a Bridge Loan?
Bridge loans aren’t for everyone. Here’s what to consider:
1. You must qualify financially
Your lender must be confident your current home will sell.
2. There are fees
Expect:
Origination fees
Appraisal fees
Possibly higher interest
3. There is risk in slower markets
If your home takes longer to sell than expected, carrying costs can increase.
This ties into why timing matters:
Why WA Homes Fall Out of Contract
4. Not all lenders offer bridge loans
So working with the right local lender is essential.
7. How Bridge Loans Compare to Other Options
Many homeowners assume bridge loans are their only option, but you may also consider:
Home Equity Line of Credit (HELOC)
Borrow equity before listing.
Useful if you’re not ready to sell yet.
Extended closings
Negotiate more time to complete your purchase.
Rent-back agreements
Stay in your home after selling while you finish buying your next one.
Contingent offers
Purchase is dependent on selling your home — works best in slower markets.
The right approach depends on your timing, equity, and comfort level.
8. When a Bridge Loan Makes the Most Sense
From my real-world work with Washington move-up buyers, bridge loans work best when:
You have strong equity
You want to avoid two moves
You’re buying in a competitive area
Your current home will sell quickly
You want to secure a home before PCS orders start
You don’t want strangers walking through your home while you still live there
Bridge loans aren’t about risk — they’re about strategy when used correctly.
My Honest Take: Bridge Loans Give Washington Homeowners More Freedom Than They Realize
Most homeowners don’t realize they have options.
They think they must sell before buying — or risk carrying two mortgages.
But bridge loans give you flexibility, timing control, and the ability to move into your next chapter without stress.
When used wisely, a bridge loan can make your move smoother, safer, and more strategic.
If you're considering a move and want to understand whether a bridge loan fits your situation, I’d love to walk you through your options. Together, we’ll build a financing and timing plan that protects your budget and keeps your move stress-free.
Written by: Lani Fisher — Washington Realtor Helping Everyday Buyers & Sellers With Confidence