Equity Unlock: Bridge Loans For Relocating Buyers
Use a bridge loan to buy your next home before you sell. Access up to 80% of your current home’s value, unlock your equity for the next purchase, and make your move with less stress and more flexibility.
What Is LendFriend’s Equity Unlock Product?
Equity Unlock is LendFriend’s short-term bridge loan for homeowners who want to buy their next home before selling their current one. It allows you to access up to 80% of your existing home’s value and use that equity toward your next down payment, closing costs, or debt payoff.
By accessing your equity before you sell, you can make a stronger offer on your next home, avoid a home-sale contingency, and move on your schedule instead of rushing to coordinate two closings.
Equity Unlock is one of the financing options available through our Buy Before You Sell program. While DTI Drop can help reduce the impact of your current housing payment when qualifying for a new mortgage, Equity Unlock gives you access to the cash tied up in your current home.
The bridge loan is designed for short-term use and has no prepayment penalty. Once your current home sells, the loan can be repaid from the sale proceeds, giving you more flexibility and helping make the move from one home to the next less stressful.
Why Relocating Homebuyers Trust LendFriend for their Bridge Loans
A bridge loan gives homeowners a way to access the equity in their current property before it sells. LendFriend Mortgage helps buyers use that equity to fund their next purchase, make stronger offers, and move without having to perfectly coordinate the sale of one home with the closing of another.
Here’s what sets our bridge loans apart:
- Access your home equity before you sell. A bridge loan can unlock cash from your current home for the down payment, closing costs, or other funds needed to purchase your next property. Depending on your goals, homeowners may also want to compare this approach with a cash-out refinance.
- Make a stronger, non-contingent offer. Use your available equity to purchase your next home without making the transaction dependent on selling your current property first, a major advantage in competitive markets like New Jersey.
- No monthly bridge payments with certain programs. Eligible bridge loan options can defer repayment until your existing home sells, helping you preserve cash while temporarily owning two properties.
- Access up to 80% of your current home’s value. Qualified homeowners may be able to convert a substantial amount of existing equity into cash for their next purchase.
- Move first and sell when you are ready. Close on the new home, complete your move, and then prepare the old home for sale without trying to manage moving trucks, buyers, and two closings on the same day. This can be especially valuable for long-distance relocations to markets such as Colorado or Florida.
- Fast approvals when timing matters. We quickly review your current property, available equity, and next purchase so you know how much buying power you have before making an offer.
- Trusted by more than 1,000 borrowers. Our 1,000+ client reviews reflect the responsive communication and experienced guidance that matter when a bridge loan connects two major real estate transactions.
Bridge Loans We’ve Closed For Relocating Buyers
LendFriend bridge loans help homeowners access equity from their current property before it sells, giving them the cash needed to purchase their next home without waiting for sale proceeds.
These transactions range from everyday moves to seven-figure purchases where hundreds of thousands of dollars in home equity are needed to fund a down payment, cover closing costs, or complete the next purchase.
Here are a few bridge loans we have closed for relocating homeowners.
$500K Bridge Loan for a $1.2M New Hampshire Purchase
A homeowner purchasing an approximately $1.2 million home in New Hampshire needed access to equity before the existing property sold. LendFriend arranged a $500,000 in bridge loan proceeds alongside an $700,000 first mortgage, giving the buyer the funds needed to close first and sell afterward.
$590K Bridge Loan for a $1.1M North Carolina Purchase
A homeowner relocating from Florida to North Carolina was purchasing an approximately $1.05 million home with a $765,000 mortgage while substantial equity remained tied up in the existing property. A $590,000 bridge loan generated roughly $278,000 in proceeds, giving the buyer the cash needed to complete the purchase before selling the Florida home.
Buy Before You Sell Bridge Loan for a $412K Dallas Purchase
A homeowner relocating to the Dallas area purchased an approximately $412,000 home with a roughly $330,000 mortgage. Buy Before You Sell financing allowed the buyer to move forward with the Texas purchase while the existing property was still part of the relocation plan, reducing the need to perfectly synchronize the sale and purchase closings.
$735K Bridge Loan for a $1.5M Austin Purchase
A homeowner used a $735,000 bridge loan on their existing Florida property to help fund the purchase of an approximately $1.5 million home in Austin. LendFriend then closed a $1 million purchase mortgage on the new home just one week later, allowing the borrower to access existing equity, complete the move, and sell the Florida property afterward.
A Typical Equity Unlock Transaction
A family is relocating from Naples, Florida to Franklin, Tennessee. Their Naples home is worth $3 million with a $1.2 million jumbo mortgage, and they want to buy a $2.4 million home in Franklin using a Tennessee jumbo loan before selling.
With Equity Unlock, they can access their Florida home equity through a short-term bridge loan, use the proceeds toward the Franklin purchase, move first, and sell the Naples home afterward.
Day 1: Get Pre-Approved for the Bridge Loan and Jumbo Purchase
We review the Florida property, available equity, and new Tennessee purchase so both loans can move forward together.
Weeks 1-2: Find the Home and Make an Offer
With bridge financing already planned, the family can make a stronger offer without waiting for the Naples home to sell.
Week 3: Offer Accepted
We begin the bridge loan and Tennessee jumbo mortgage simultaneously, including appraisals, documentation, and underwriting.
Weeks 4-5: Plan the Move
The financing moves toward closing while the family focuses on movers, travel, and getting ready for the new home.
Week 6: Close the Florida Bridge Loan
The bridge loan unlocks equity from the Naples property and makes those funds available for the Tennessee purchase.
Week 7: Close in Franklin and Move
The family closes on the new home, moves to Tennessee, and can sell the Naples property afterward without having to coordinate both transactions on the same day.
FAQs About Bridge Loans and Equity Unlock
What is a bridge loan?
A bridge loan is short-term financing that lets you access equity from your current home before it sells. The proceeds can be used toward the down payment, closing costs, or other cash needed to buy your next home, allowing you to purchase first and sell afterward.
Is a bridge loan a type of cash-out refinance?
Yes. Equity Unlock is a short-term cash-out refinance on your current home. The bridge loan pays off your existing mortgage and converts additional home equity into cash, with the expectation that the loan will be repaid when the property sells.
Can I get a bridge loan if I already have a mortgage?
Yes. Most homeowners who use Equity Unlock still have a mortgage on their current property. Your existing mortgage is paid off as part of the bridge loan closing, and the remaining proceeds are available to help fund your next purchase.
Can I use a bridge loan for the down payment on a jumbo loan?
Yes. This is especially useful when buying a higher-priced home because jumbo loan down payments can require hundreds of thousands of dollars at closing. A bridge loan lets you access equity that would otherwise remain tied up in your current property until it sells.
Can I use gift funds along with a bridge loan?
Yes, depending on the guidelines for your new mortgage. Buyers can often combine bridge loan proceeds with eligible gift funds to cover the down payment or closing costs. We review both sources upfront so there are no documentation issues before closing.
How is a bridge loan different from a home equity line of credit (HDo I have to make monthly payments on the bridge loan?ELOC)?
Not always. Certain Equity Unlock options allow monthly payments to be deferred while your existing home is being sold. Interest continues to accrue, and the bridge loan can then be paid off from the proceeds when the property closes.
How long do I have to sell my current home?
Equity Unlock is designed as short-term financing, so you have time to buy, move, prepare your current property for sale, and then close the sale. The exact term depends on the bridge loan program and your specific transaction.
Are bridge loans available in every state?
No. Bridge loan availability depends in part on the state where the home providing the equity is located. Equity Unlock is available for eligible properties in states including Connecticut and Illinois, along with many of the other states LendFriend serves. Texas has different home equity lending requirements, so Equity Unlock generally cannot be used against a Texas homestead in the same way. A homeowner moving to Texas can still use a bridge loan against a current home located in an eligible state, as seen in the examples by past clients.
Do I have to list my current home before getting a bridge loan?
No. Many homeowners use Equity Unlock specifically because they want to buy and move before listing their existing home. That gives you time to move out, prepare the property for showings, and sell without having your next purchase depend on the closing date of your current home.
Can a bridge loan help me make an offer without a home-sale contingency?
Yes. By accessing your equity before your existing property sells, you may have the cash needed to close on the next home without making your offer contingent on a prior sale. That can make your offer considerably stronger when competing for a desirable property.