Short-term interest-only financing that lets you purchase your next home before selling the current one. Close in 2–4 weeks, no sale contingency needed. Investors welcome for time-sensitive acquisitions.
Move on your timeline — buy the home you want without waiting for your current home to sell. Here’s what makes bridge loans work.
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Close in 2–4 Weeks
Bridge loans close significantly faster than traditional mortgages. Underwriting focuses on property equity rather than full borrower qualification, so you can move quickly on the home you want.
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No Sale Contingency
Make a non-contingent offer on your new home. Sellers prefer offers without sale contingencies — a bridge loan gives you that competitive edge in multiple-offer situations.
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Interest-Only Payments
Pay only the interest during the bridge term — no principal payments until you sell. This keeps your monthly costs manageable while you carry two properties during the transition.
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Flexible Qualification
Equity in your departing property is the primary qualification factor. Some programs offer flexible or waived income verification — your home’s value does the heavy lifting.
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Investors Welcome
Close quickly on auction properties, distressed sales, and time-sensitive deals. Bridge-to-permanent financing lets you stabilize, then refinance into a long-term investment loan.
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FDIC-Insured Lender
Borrow from a federally chartered bank with over 110 years of stability. Your deposits and your trust are backed by the full faith of the U.S. Government.
Eligibility
Who Qualifies for a Bridge Loan?
If you have equity in your current home and a clear exit strategy, a bridge loan can unlock your next move.
Borrower Requirements
Equity Position
Sufficient equity in current home (typically 20%+ after bridge)
Bridge amount up to 80% of available equity
Combined LTV (first mortgage + bridge) capped at ~80%
Credit
620+ credit score (minimum varies by program)
Equity is the primary qualification factor
No recent bankruptcies or foreclosures
Income & Exit Strategy
Flexible income verification — some programs waive docs
Clear exit strategy: plan to sell current home within term
Ability to carry both payments during the bridge period
Investors: exit via sale, refinance, or permanent financing
Equity Is King
Bridge loans are primarily equity-based. Your current home’s value and your existing mortgage balance are the most important qualification factors — not your income or debt ratios.
Loan Details
Bridge Loan Terms
6, 9, or 12 month terms
Interest-only monthly payments
Fixed rate for the full term
Extensions available (with fee) if needed
Property Types
Single-family homes (primary or investment)
Condos and townhomes
2–4 unit properties
Investment properties (for investors)
Typical Bridge Amounts
$75,000 to $2,000,000+
Up to 80% of available equity in departing property
Higher amounts available with strong equity positions
Interest Rates
Typically 8.5%–12%+ (varies by program)
Fixed for the full bridge term
Better equity = better rate
Buy Before You Sell
Buy Your Next Home Before Selling
For homeowners who need to purchase their next home before selling the current one. A bridge loan lets you make a non-contingent offer, avoid temporary housing, and move on your timeline.
Make a non-contingent offer — more attractive to sellers
No double move — go directly from old home to new home
Current Home Value: $450,000 Mortgage Balance: $220,000 Available Equity: $230,000 Bridge Amount: $180,000 Monthly Payment (9.5%): ~$1,425/mo
When your current home sells, the sale proceeds pay off both the existing mortgage ($220K) and the bridge loan ($180K) in a single closing transaction. You keep the remaining equity.
Investor Bridge
Fast Financing for Time-Sensitive Deals
For investors who need to close quickly on acquisitions — auction properties, distressed sales, and time-sensitive deals where traditional financing is too slow.
Close in as little as 2–3 weeks
No income verification on some programs
Fund renovations, then refinance into permanent financing
Competitive advantage in multiple-offer situations
A popular investor approach for time-sensitive deals:
Step 1: Close quickly with a bridge loan Step 2: Renovate or stabilize the property Step 3: Refinance into a DSCR or conventional investment loan Result: Long-term financing at lower rates
A bridge loan is short-term financing that bridges the gap between buying your next home and selling your current one. Here’s the step-by-step lifecycle:
Apply & Pre-Qualify: We assess your equity, credit, and exit strategy
Appraise Current Home: Confirm value and available equity
Close Bridge Loan: Receive funds in 2–4 weeks
Buy New Home: Use bridge funds for down payment or full purchase
Sell Current Home: List and sell on your timeline
Pay Off Bridge: Sale proceeds retire the bridge loan at closing
A typical buy-before-sell scenario from start to finish:
Week 1–2: Apply, appraisal ordered Week 3–4: Bridge loan closes, funds available Week 4–8: Purchase new home, begin moving Month 2–6: List and sell current home Sale Closing: Bridge paid off from proceeds
Most bridge loans are paid off well before the full 12-month term. The average bridge period is 4–6 months — from purchase of the new home to sale of the old one.
Bridge Loan Costs
Understanding Bridge Loan Costs
Bridge loans have upfront costs in addition to monthly interest payments. Here’s what to budget for.
Cost
Typical Amount
Notes
Origination Fee
1.5–3% of bridge amount
One-time, deducted at closing
Appraisal
$500–$1,000
Current property + new property may both need
Title & Escrow
$1,000–$3,000
Varies by state
Recording Fees
$200–$500
County recording
Interest Reserve
3–6 months prepaid
May be held in escrow
Total Bridge Costs
3–6% of bridge amount
In addition to interest payments
No Prepayment Penalty on Most Programs
Pay off your bridge loan as soon as your home sells — no extra cost. Most borrowers pay off their bridge well before the full term expires.
✓ No prepayment penalty on most programs
✓ Interest stops accruing on the day you pay off
✓ Interest reserve refunded for unused months (if escrowed)
Note: Rates and costs are illustrative and subject to change. Your actual costs depend on bridge amount, credit profile, equity position, and program. Contact us for a personalized quote.
Loan Comparison
Bridge Loan vs. HELOC
Both access your home equity, but they serve very different purposes. See which one fits your situation.
Bridge Loan
HELOC
Purpose
Buy before you sell / quick acquisition
Ongoing equity access
Term
6–12 months
10-year draw + 20-year repay
Payment Type
Interest-only
Interest-only during draw
Closing Speed
2–4 weeks
4–6 weeks
Rate Type
Fixed for term
Variable (Prime + margin)
Typical Rates
8.5–12%+
Prime + 0.5–2%
Income Verification
Flexible / sometimes waived
Required
Property Requirement
Must have sufficient equity
Must have sufficient equity
Payoff
Proceeds from home sale
Revolving — no forced payoff
Best For
Transitional financing
Long-term equity access
Rates, terms, and requirements vary by lender, property type, and borrower qualifications. Subject to credit approval.
Bridge Loan Calculator
Estimate Your Bridge Loan Cost
Calculate your interest-only monthly payment, total interest cost, and buying power for your bridge loan scenario.
Up to 80% of equity
Enter to see your total buying power
Bridge Loan
Interest-Only Monthly Payment
$1,425 /mo
Interest-Only Payment$1,425
Total Interest Cost$17,100
Available Equity$230,000
Bridge LTV78%
Buying Power$410,000
Bridge LTV exceeds 80% of equity. Consider reducing the bridge amount.
Estimates only. Actual rates, terms, and payments will vary based on credit profile, equity position, and lender guidelines. Subject to credit approval.
The Process
Your Bridge Loan Timeline
From application to funding in as little as 2–4 weeks. Here’s what to expect.
1
Application & Equity Assessment
1–3 Days
We review your current home’s estimated value, existing mortgage balance, and available equity. A soft credit pull has no impact on your score. We’ll determine your bridge loan amount and provide a rate quote.
2
Appraisal & Underwriting
7–14 Days
We order an appraisal on your current property to confirm its market value. Underwriting focuses on the equity position and your exit strategy (home sale plan). This process is faster than traditional mortgages.
3
Close Bridge & Purchase New Home
1–7 Days
Sign your bridge loan documents and receive your funds. Use the bridge proceeds as the down payment (or full purchase) for your new home. Make a non-contingent offer with confidence.
4
Sell Current Home & Pay Off Bridge
2–6 Months
List and sell your current home on your own timeline. When the sale closes, the proceeds pay off both the existing mortgage and the bridge loan. You keep the remaining equity. Bridge complete.
Frequently Asked Questions
Bridge Loan FAQs
Answers to the most common questions about bridge loans, qualification, costs, and the buy-before-sell process.
No. Texana Bank Mortgage uses a soft credit inquiry for pre-qualification, which has absolutely no impact on your credit score. You can check your eligibility, explore loan options, and get pre-approved without any effect on your credit. A hard inquiry only occurs later if you formally move forward with a full application.
A bridge loan is short-term financing secured by the equity in your current home, designed to help you purchase a new property before selling the existing one. Bridge loans are typically 6–12 months with interest-only payments and are paid off from the proceeds of your home sale. They are also used by investors for time-sensitive acquisitions like auction properties and distressed sales.
You borrow against the equity in your current home to fund the down payment or purchase of a new home. During the bridge period, you may carry both properties. When your current home sells, the sale proceeds pay off the bridge loan and any existing mortgage. This eliminates the need for a sale contingency on your new purchase, making your offer more attractive to sellers.
Bridge loan amounts are typically up to 80% of your available equity in the departing property. For example, if your home is worth $450,000 and you owe $220,000, your available equity is $230,000, and you could potentially borrow up to approximately $184,000 as a bridge loan. Higher equity positions may qualify for larger bridge amounts.
Bridge loan interest rates typically range from 8.5% to 12% or higher, depending on the lender, your credit profile, equity position, and loan amount. Rates are higher than traditional mortgages because bridge loans are short-term, higher-risk products. However, the total interest cost is limited by the short term — you may only pay 4–6 months of interest before selling.
Yes. Most bridge loans require interest-only monthly payments during the loan term. You do not make principal payments during the bridge period. The full principal balance is paid off as a lump sum when your current home sells. This keeps your monthly costs lower during the transition period when you may be carrying two properties.
Bridge loans typically have terms of 6 to 12 months. Some lenders offer extensions (usually for an additional fee) if your home has not sold by the end of the initial term. The ideal scenario is to sell your current home within the bridge term and pay off the loan from the sale proceeds. Most borrowers pay off within 4–6 months.
Options include requesting a term extension from the lender (usually with an extension fee), reducing the listing price to accelerate the sale, or exploring alternative financing to pay off the bridge. Some lenders build extension clauses into the original loan terms. It’s important to have a realistic sale timeline and pricing strategy before taking a bridge loan.
Yes. Most bridge loan borrowers have an existing mortgage on their current home. The bridge loan is typically structured as a second lien on your current property. The combined loan-to-value (first mortgage plus bridge loan) is generally capped at approximately 80% of your current home’s appraised value.
Requirements vary by program. Some bridge loan programs have flexible or waived income verification because the primary qualification factor is equity in the departing property and the exit strategy. Other programs require standard income documentation. Texana Bank offers programs with flexible qualification based primarily on your equity position.
Bridge loans can close in as little as 2 to 4 weeks, and sometimes faster. This is significantly quicker than traditional mortgages (30–45 days) because underwriting focuses primarily on property equity and the exit strategy rather than full borrower qualification. Speed is one of the key advantages of bridge financing.
Yes. Investors commonly use bridge loans for auction properties, distressed acquisitions, and time-sensitive deals where traditional financing is too slow. Bridge-to-permanent financing is a popular strategy: close quickly with a bridge loan, renovate or stabilize the property, then refinance into a DSCR or conventional investment loan at lower long-term rates.
Some bridge loan programs allow a portion of the funds to be used for renovations on the departing property, increasing its market value before listing. This can help maximize your sale price and net proceeds. Discuss renovation allowances with your loan officer during the application process to see what’s available.
Bridge loans are short-term (6–12 months) with a defined payoff event (home sale), fixed rates, and faster closing (2–4 weeks). HELOCs are revolving credit lines with 10-year draw periods, variable rates, and longer closing times (4–6 weeks). Bridge loans may not require income verification, while HELOCs always do. Bridge loans are ideal for transitional financing; HELOCs are better for ongoing equity access.
Most bridge loan programs have no prepayment penalty. You can pay off the bridge as soon as your current home sells without any additional cost. This is a significant advantage, as many borrowers pay off their bridge loan well before the full term expires — interest stops accruing on the day you pay off.
You typically need at least 20% equity in your current home after accounting for the existing mortgage and the bridge loan amount. The bridge amount can be up to 80% of your available equity (home value minus mortgage balance). More equity generally means better rates, higher bridge amounts, and more favorable terms.
Bridge loans are primarily equity-based, so some programs accept lower credit scores (typically 620 minimum). Since the primary qualification factor is equity in your departing property and the exit strategy (home sale), credit requirements may be more flexible than traditional mortgages. Better credit will result in better rates and terms.
Common bridge loan fees include an origination fee (1.5–3% of bridge amount), appraisal ($500–$1,000), title and escrow ($1,000–$3,000), recording fees ($200–$500), and an interest reserve (3–6 months prepaid interest held in escrow). Total upfront costs typically range from 3–6% of the bridge loan amount, in addition to monthly interest payments.
Yes — that is the fundamental purpose of a bridge loan. During the bridge period, you effectively own both properties: the new home (with a new mortgage) and the current home (with the existing mortgage plus bridge loan). The bridge loan provides the funds needed to purchase the new property before selling the old one.
The bridge loan is paid off from the proceeds of selling your current home. When the sale closes, the title company directs funds to pay off the existing first mortgage and the bridge loan from the sale proceeds. Any remaining proceeds go to you. If you sell for enough, the entire bridge is eliminated in a single closing transaction.
Reviews
What Borrowers Say About Texana Bank
Real reviews from real homeowners. See why bridge loan borrowers trust Texana Bank Mortgage.
I had an excellent experience working with my texana bank mortgage from start to finish. They were extremely professional, knowledgeable, responsive, and made the entire mortgage process feel much easier than I expected.
They took the time to explain everything clearly, answered all of my questions, and kept me informed throughout the entire process. I always felt like I had someone in my corner who genuinely cared about helping me reach my goals.
If you’re looking for a mortgage broker who is trustworthy, dependable, and willing to go the extra mile for their clients, I highly recommend them. I truly appreciate all of their hard work and would definitely work with them again!
K
Kent Sisco
★★★★★
Adam McCormick is fantastic! Easy to work with and keep me informed every step of the way! Looking forward to working with him again in the future
A
Andrea Ferrell
★★★★★
Adam was phenomenal from start to finish! He was friendly and professional. He assisted me every step of the way, walking me through the process with ease. He was always there for whatever questions I had. He was very, very patient and always reached out to me in a timely manner if I contacted him and he was unavailable at the time. Moreover, he made me feel as if he cared for more than just my loan, but me as a person!!! Texana is blessed to have him as an associate!!
Andrea
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Clay Ragsdale
★★★★★
Where to really start. Adam walked me through everything and put me at ease. I have had some bad experiences with other companies so I was digging and looking for any red flag. There was none with him and his direct talk is what did it for me. Someone that is real and just says what it is. No false hope or misdirection at anytime.
I would recommend him to anyone and definitely Someone looking for honesty and caring. The communication is top notch and a true professional.
Respectfully,
Clay
B
Belvia Lynn
★★★★★
My overall experience while working with Adam McCormick was excellent. He was very pleasant and professional.
J
Joseph Hardman
★★★★★
Adam McCormick is an absolute professional in every sense of the word. I will NEVER use any other loan officer for my financials other than Adam as long as he is in the business. His work as my loan officer was exceptional. Throughout the process, he always responded to an e-mail, responded to a text, called right back if not answering immediately. He always made you feel as though you were his only client. There was never the impression he had more important things to do other than speak with you. He worked with us through a death in the family, personal issues, and numerous other challenges. It's possible other loan officers would have given up on us during this process, but Adam stuck with us through it all. His work ethic is amazing. He is an expert in his craft. I could not possibly give a higher recommendation, he has redefined what right looks like in this business.
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Marsha Kessler-Bradshaw
★★★★★
I was about to go with another company for this refinance no cash out until I received a call from this Adam McCormick. He was so knowledgeable and made me feel very comfortable with this process. Adam is knowledgeable ,courteous, understanding and has a real passion and patience for people. 👍We are at the closing. Thank you Adam McCormick!!
P
Peter Jenkins
★★★★★
My situation had its difficulties. Justin was confident and persistent through the process and we the got the result
D
Dale Samuel
★★★★★
Mark has been very professional and has been very respectful to my wife and myself.
Mark has shown that genuine human qualities and really worked with us and for us.
This actually been a pleasure to get to know Mark.
J
James Fields
★★★★★
Outstanding Service and support from a truly Customer Oriented Agent! My pleasure to have worked with Mr. MCcormick.! Would follow him to next source if necessary. He is concerned in an outstanding balanced way. My pleasure to?know and do Business with him and The Bank!
JFields
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Rose Stone-Stewart
★★★★★
Texana Bank was there for us throughout the entire process. Their personableness, as well, their professionalism. As a financial institution it was nice to know that while obtaining a loan, we had a safe place to relay. They are absolutely “by the book” and at the same time makes the process easier to participate. The hospitality and genuine concern as clients was overwhelming of which we will always consider Texana Bank first, before mostly any other financial institution.
M
Mitchell Morris
★★★★★
Greg was awesome and the process was simple. I have nothing but the highest praise for the process and for Greg himself. Thank you.
R
Ronald Bylsma
★★★★★
Best refi experience of our lives, Andre was very knowledgeable and always kept us calm when things got stressful. Would recommend Mr. Andre Floyd to anyone looking for a great lending officer!
D
Dejan Jajcevic
★★★★★
I’ve worked with mini bankers before and I used to do them over a decade ago myself and my experience that I had with Chad was nothing short of phenomenal. He is a wonderful Banker does a very diligent job and did not miss any moments of reassuring me where my loan was and closing I couldn’t say enough good things about him and I hope if I ever need to go through this stressful process again he is still in business to take care of me
J
James Reaves
★★★★★
Adam is awesome super friendly easy to work with always aware of what’s going on and keeps you informed which is great.
L
Lesli Hopkins
★★★★★
Lynette is absolutely awesome to work with! She takes the time to make you comfortable with the process and answers any questions completely and accurately
B
Bobby Strickland
★★★★★
Andre Floyd was ABSOLUTELY AMAZING. I just love working with him.
A
Abraham Sanchez
★★★★★
Working with Greg Darlin has been an awesome experience. An honest and sincere individual. He is to the point and very very knowledgeable. I appreciate the fact that he didn’t try to give me the run around and through the entire process I learned a few things. Thank you.
Ready to Buy Before You Sell?
Whether you’re transitioning between homes or closing quickly on an investment, our bridge loan specialists are here to help you move on your timeline.
