Bridge Loan

About this program

How it works — step by step

1. 1

   Take the 60-second check-in

   Five questions about your current home equity, the new property you're purchasing, and your timeline for selling. The matcher confirms whether a bridge loan is the right structure or whether a cash-out refinance is a better fit.

2. 2

   Establish your current home equity

   A bridge loan is typically sized against the equity in your departing residence — usually 65–80% of current appraised value minus any existing mortgage. Your officer orders a desktop or full appraisal to establish the equity cushion.

3. 3

   Licensed MLO structures the bridge

   A Sunrise officer calculates the bridge amount, confirms the new purchase financing, and maps out the combined payment structure during the bridge period. Some bridge programs carry both properties simultaneously; others structure a first lien on the departing home.

4. 4

   Close the bridge; close the new purchase

   The bridge closes first, providing the funds to purchase (or provide down payment on) the new home. The departing residence sale repays the bridge. Timeline is critical — the officer ensures both closings align.

5. 5

   Sell the departing property and pay off the bridge

   When the old home sells, the bridge loan is repaid in full. Any remaining equity after payoff goes to you. Bridge loans do not have prepayment penalties — early payoff from a faster sale is always fine.

What it usually looks like

• Existing equity in departing property — typically 20–35% equity floor required
• Clear plan and timeline for selling the departing property
• Credit score typically 620–680+ (varies by bridge lender)
• Income documentation to qualify for the new permanent loan simultaneously
• Bridge loan term: typically 6–24 months
• Interest-only payments typical during the bridge period; some programs defer all payments
• Combined LTV on both properties typically ≤ 80%

How it compares

Program terms, LTV limits, and documentation requirements vary by lender. As of June 2026. Not a commitment to lend.

Real scenarios

Who this fits

• Mortgage for an Established SMB Owner

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• Mortgage for a Startup Founder

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• Mortgage for a Dual-Income Household

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Common questions

What is a bridge loan used for?

Buying a new property before selling your existing one. The bridge loan uses equity from your departing home to fund the new purchase. It "bridges" the gap between the two closings so you can move without timing contingencies or double-moving.

How much can I borrow with a bridge loan?

Typically 65–80% of your current home's equity (appraised value minus existing mortgage). If your home is worth $700K and you owe $200K, the equity is $500K — a bridge at 65% would provide $325K for the new purchase.

Do I have to make payments during the bridge period?

Many bridge programs are structured as interest-only or deferred-payment during the bridge period. Some programs accrue all interest and collect it at payoff. Your officer confirms the payment structure upfront so you can plan your cash flow.

What happens if my house doesn't sell?

Bridge loans have terms, typically 6–24 months. If the departing property doesn't sell within the term, you may need to refinance or extend the bridge. This is a real risk — the officer assesses your market and realistic sale timeline before recommending a bridge.

How is a bridge loan different from a HELOC?

A HELOC is a revolving line of credit on an owned property — drawn over time, repaid over time. A bridge loan is a single short-term advance specifically for buying a new property before selling, with a defined payoff trigger (the sale).

Can a self-employed borrower get a bridge loan?

Yes. Bridge lenders typically underwrite the equity position and the plan to sell, not just income. For self-employed borrowers, the equity cushion and the strength of the local market are the primary qualifying factors.

Is the bridge loan interest tax-deductible?

Bridge loan interest may be deductible as mortgage interest on a primary or second residence, subject to IRS rules. Consult your CPA for guidance on your specific situation — this is a tax question, not a mortgage question.

What credit score is required for a bridge loan?

Most bridge programs start at 620–680. Portfolio bridge lenders weight the equity position and departure plan heavily alongside credit. The officer confirms the right program for your profile.