Bridge Loans

Sellers sometimes need help with buying a home before their current home is under contract. Other times, they need a way to sweeten the deal to entice buyers in a buyers’ market. Preferred Rate has programs to help bridge the gap in financing.

Our Bridge loan programs can help with the purchase of a new home before an existing home is sold. If a seller is unwilling to consider offers with sales contingencies, we have several options to choose from.

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Product highlights

Close with Confidence Bridge Loan
• For borrowers who are under contract with their existing property • Loan amounts to $750,000 • Don’t need a sales contingency • Borrower can use the equity from their current home (pending sale) to fund to the purchase of a new home • Borrower can omit any liabilities connected to the departing residence when qualifying for the new home purchase
Debt-Inclusive Bridge Loan
• For borrowers whose existing property isn’t yet under contract • Loan amounts to $750,000 • Borrower can use a new home • All of the debts for the departing residence, including any payments on the bridge loan (if any are required), are factored into the borrower’s total DTI when purchasing the new home
HomeLight and Knock Buy Before You Sell Programs
• Access equity of departing residence • Loan Amounts up to $2M • 620 Minimum Credit Score • Up to 70% CLTV • 0% Interest loan, no monthly payments • FNMA/FHLMC Guidelines

Borrower advantages

We can help them purchase a new home before their existing home is sold, or allow for a little extra time and flexibility in selling their current home
We can help them leverage the equity from their current home (that is a pending sale) and use the funds to purchase a new home
If a seller is unwilling to consider offers with sales contingencies, they can close with confidence through our Bridge Loan program to present the strongest offer
HomeLight or Knock will enter into contract on the departing residence, enabling the departing residence PITIA expenses to be excluded from DTI on new primary residence purchase

Realtor advantages

Expand the inventory of options available by providing your buyer the most flexibility for purchasing a new home while selling their current residence.
Allows the borrower to act quickly to take advantage of bargains in the real estate market or in securing their dream property
Allows the borrower to act quickly to take advantage of bargains in the real estate market or in securing their dream property