ServicesBridge Loans
Bridge Loans in Dripping Springs
A bridge loan lets you draw on the equity in the property you own now to buy the next one before the first has sold. We size it carefully, plan the payoff from day one and keep the equity you spent years building working for you.
How bridge financing works, and who it suits
Think of a bridge loan as short-term borrowing backed by the property you already own. It carries you through the stretch between buying and selling, often supplying the down payment on the next purchase, and it is retired once the first property closes. The term is usually counted in months rather than years.
It makes sense when you hold real equity, own a property that should sell in a reasonable time and have found a purchase that won't wait. In the Hill Country, where a well-placed listing can draw several offers, sellers often favor the buyer with no sale contingency attached. It makes less sense if the old property needs months of work before listing, or if the plan only holds when every date lands perfectly.
We handle a bridge loan the way you would care for anything meant to last. Guard the equity, keep the payments within reach and settle the exit before you sign.
What our bridge loan work covers
Equity review on your current property
We start with what you owe, a realistic value and what the sale should net after commissions and closing costs. That number sets how much a bridge loan can sensibly carry.
Pairing with the new home loan
A bridge loan rarely stands alone. We structure it alongside the mortgage on the next purchase, often one of our conventional loans, so both qualify together and the payments are planned as one picture.
Payment structure options
Some bridge loans carry interest-only payments, while others defer payments to the payoff. We explain how each affects your monthly budget and your proceeds at closing.
A written exit plan
Before closing, we write down the expected sale timeline, the payoff and what happens if the listing takes longer. You keep a copy.
Coordination on both closings
We keep your real estate agent and the title company informed on the purchase and the sale, so both close cleanly and in the right order.
Signs a bridge loan may be the right move
- You found the next place first
- The property you want is listed now, and yours isn't on the market yet. Waiting to sell could mean losing it.
- Sellers are passing on contingent offers
- If your agent says offers tied to a sale aren't competitive, removing the contingency can make yours the stronger one.
- Your equity is tied up
- You have meaningful equity but limited cash on hand. A bridge loan lets that equity fund the down payment instead of sitting idle until the sale.
- You would rather move once
- Selling first can mean a rental, storage and two moves. Bridging lets you move straight to the next property and prepare the old one for sale while it is empty, which often helps it show better.
- Your calendar is set by something else
- A job start date, a school year or a builder's schedule can fix the timing. Bridge financing helps the money keep pace.
How a bridge loan comes together
- 1
Pre-qualification by phone
We talk through both properties, your income and your timeline. You leave the call knowing roughly what you may qualify for and whether a bridge loan or another option fits better.
- 2
Numbers on paper
We review the current property's value and payoff, then lay out the bridge amount, the new home loan and the expected costs line by line. Meetings can be at our office or by phone and video.
- 3
Application and underwriting
You gather documents once, and we move both loans through underwriting together. We keep you posted on any conditions as they come up.
- 4
Closing on the purchase
The bridge funds at closing on the new property, so your offer can stand without a sale contingency.
- 5
Sale and payoff
When the original property sells, the bridge loan is paid from the proceeds at that closing. We confirm the payoff and close the file.
What shapes the cost of a bridge loan
Bridge loans generally carry higher rates than a long-term mortgage because they are short and secured by a property in transition. What you pay depends on your situation, and we walk through each piece in writing before you commit. Once we know the details, we can give you rate quotes you can compare.
- Equity in the current property
- More equity means a lower combined loan-to-value. That usually brings better terms and more room if the sale price comes in lower than hoped.
- Length of the bridge
- Most are written for a matter of months. A longer term, or an extension, adds interest and sometimes fees.
- Payment structure
- Interest-only, deferred or paid from proceeds, each choice changes what you pay monthly and what comes out at the sale's closing.
- Credit and debt-to-income
- Underwriting may count payments on both properties for a time. Strong credit and steady income help both the rate and the approval.
- Closing costs on two loans
- Appraisal, title and origination costs apply to the bridge as well as the new mortgage. We show them side by side so nothing arrives as a surprise.
Bridge loan questions we hear
- Will I have to make two mortgage payments at once?
- Possibly, for a while. Depending on the structure, the bridge may be interest-only or have payments deferred until the sale, which softens the overlap. Before you apply, we model the monthly cost for the months you expect to carry both properties, plus a cushion.
- What if the old place sits on the market longer than planned?
- We would rather answer that at the start than discover it halfway through. Our first conversation covers an honest list price and a sale timeline with some slack built in. Certain bridge loans can be extended for an added cost, and lowering the asking price or refinancing are other routes. You get a written note showing which of those your loan actually allows.
- Is a HELOC a better choice?
- Sometimes. A HELOC on your current property can also fund a down payment and may cost less, but it usually has to be open before you list, and many lenders won't open one on a property already for sale. We compare both with you, and our HELOC page covers that option in more detail.
- How is this different from a hard money loan?
- Hard money loans are typically based mostly on the property and used by investors for purchases or renovations. A bridge loan for a move is underwritten more like a traditional mortgage and tied to a planned sale. If you are investing rather than relocating, our Hard Money Loans page may fit better.
- Who will I be working with?
- Your file stays with one loan officer, NMLS licensed for 10 years, whose career spans 11 years in the mortgage industry. That background matters here, since a bridge depends on two closings lining up in the right order. We meet at our office or by phone and video, which works as well for buyers coming from Lakeway or Wimberley as for those already in town.
Plan the move before you make the offer
A short phone call tells you whether a bridge loan fits and roughly what you may qualify for. Have your payoff balance and a sense of your timeline handy.