A bridge loan, sometimes called a swing loan, is a short-term loan that helps you buy a new home before your current one sells. It lets you use the equity in your existing home for a down payment or closing costs on the next one.
These loans usually last 6 to 12 months and are paid off once your old home sells. They can make it easier to move forward with a strong offer without waiting on your current home to close.
While bridge loans can make the transition smoother, they often come with higher rates and short repayment terms, so it’s important to make sure the timing and costs fit your situation.