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Bridge Loans in Las Vegas: Unlock Your Equity to Buy Before You Sell
HomeLight
Real Estate
1 week ago
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Buying a new home in Las Vegas while trying to sell your current one can feel like walking a financial tightrope. You’re trying to line up two major transactions — and when inventory is tight and home prices are steep, the pressure can be overwhelming.

It might seem like your only option is to sell first, move out, and figure out temporary housing while you search for your next place. But there’s another option that could help the pieces fit together more smoothly.

A bridge loan might be the solution you’re looking for. This short-term financing option helps you buy your new home before your current one sells, giving you a little more control in a stressful situation.

Yes, You Can Buy Before You Sell. Why Move Twice?

Through our Buy Before You Sell program, HomeLight can help you unlock a portion of your equity upfront to put toward your next home. You can then make a strong offer on your next home with no home sale contingency.

Buy Before You Sell

What is a bridge loan, in simple words?

A bridge loan in real estate is a short-term loan that helps you buy a new home while you’re in the process of selling your current one. It gives you access to the equity in your existing home so you can cover a down payment and closing costs on your new purchase without waiting for your old house to sell.

Bridge loans tend to cost more than traditional mortgages, but they are designed to be fast and flexible, helping you move forward without as much financial stress.

Bridge loans are also sometimes referred to as:

  • bridge financing
  • bridging loan
  • interim financing
  • gap financing
  • swing loan

How does a bridge loan work in Las Vegas?

A common situation in which a Las Vegas buyer might need a bridge loan is when the buyer has to buy their next home before selling their current one. The buyer would then use the equity from their old home to help cover the down payment and closing costs of the new purchase.

Typically, the lender handling your new mortgage will also manage your bridge loan. Lenders usually require that your current home is listed for sale and will offer a bridge loan for a term of six months to one year.

Your lender may calculate your debt-to-income ratio to decide if you qualify. They might include payments from your existing mortgage, your new mortgage, and any interest-only payments on the bridge loan. If your old home is under contract and the buyer has final loan approval, the lender may only factor in your new mortgage payment.

Lenders want to be confident that you can handle payments on both homes if your sale doesn’t happen immediately.

What are the benefits of a bridge loan in Las Vegas?

Borrowing a bridge loan has several benefits, such as positioning you as a more flexible homebuyer in Las Vegas.

  • You can make a non-contingent offer on your new home
  • You only have to move once without the hassle of finding temporary housing
  • You can prepare your old home and focus on staging after you’ve moved out
  • Some lenders don’t require payments during the loan period, reducing short-term financial pressure
  • You can act quickly on the right property without waiting for your current home to sell

These combined benefits can make a bridge loan a convenient option if you’re tight on cash before selling your previous home, giving you the flexibility to repay the loan with your sale proceeds.

What are the drawbacks of a bridge loan?

While a bridge loan can increase your flexibility and ease some of the stress of buying and selling, there are some drawbacks to consider.

  • Additional loan costs like underwriting fees, origination fees, and administrative expenses
  • The added financial stress of paying two mortgages and a bridge loan at the same time
  • Qualifying may be harder than it would be for a traditional mortgage loan
  • Underwriting can take longer than you might expect, delaying your plans

Lenders will look at your monthly income and how much equity you have in your current home when deciding how much you can borrow. If you owe more than 80% of your home’s value, you might not qualify.

When is a bridge loan a good solution?

A bridge loan isn’t a blanket solution for all real estate transactions, but it can ease the stress of transitioning between an old home and a new one for some sellers.

Some examples of when a bridge loan might be a fitting solution include:

  • You need the equity you’ve built in your current home to make a down payment on a new one.
  • You only want to move once and avoid renting or staying in a hotel between selling and buying.
  • You’ve found a new home but don’t want to risk losing it to another buyer in a competitive market.
  • You’ve made an offer, but the seller won’t accept a home sale contingency, and you want to buy immediately.
  • You cannot prepare or stage your current home while living in it, either because you need a blank slate for the best price or because major renovations are required.

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