Equity Unlock | Buy Before You Sell With Bridge Loans

What Is LendFriend's Equity Unlock Product?

Equity Unlock is LendFriend’s short-term bridge loan designed to help homeowners access their existing home equity before selling. Instead of waiting for your current property to close, you can unlock up to 80% of its value to use toward your next down payment, closing costs, or debt payoff.

It bridges the gap between selling and buying — allowing you to purchase first, move once, and sell later when it makes the most financial sense.

Equity Unlock is one of the two flexible financing options available through our Buy Before You Sell program. While DTI Drop focuses on lowering your debt-to-income ratio to qualify for your next purchase, Equity Unlock helps you convert your existing equity into cash to strengthen your next offer.

Unlike a traditional home equity loan or HELOC, Equity Unlock is built for short-term flexibility. There are no prepayment penalties, and once your current home sells, the bridge loan is paid off in full. That means less pressure, stronger offers, and zero double-moves.

A Typical Equity Unlock Transaction

A family is relocating from Naples, FL to Austin, TX in the next 50 days. They bought their home in Boca Raton in 2020. It's worth $1M and they have a $400,000 mortgage outstanding. They want to buy a home in Austin but all their savings are tied up in the stock market. They don't want to trigger a tax event by selling, and they aren't ready to start the process of selling their house until they buy and move into a new house. The perfect candidates for an Equity Unlock transaction! With Buy Before You Sell's Equity Unlock, they can access up to $400,000 in equity from their Naples home to buy the house in Austin.

Day 1: Get Pre-Approved for the Bridge Loan and the Purchase Transaction

We’ll work quickly to review your finances and let you know how much home you can afford. You’ll get pre-approved for both the bridge loan and the new home purchase loan — so you can shop with confidence and no sale contingency.

Weeks 1-2: Shop for Your New Home and Make an Offer

Start working with a high-quality realtor to tour properties in your ideal neighborhood and identify the right fit. At LendFriend, we’ll coordinate with you and your agent to help ensure your offer is strong and competitive — often without a sales contingency thanks to your bridge loan pre-approval.

Week 3: Finalize Contract and Start the Loan Process

Once your offer is accepted, you’ll deliver the signed contract so we can kick off the bridge loan (refinance of your current home) and purchase loan. We’ll order appraisals, gather documents, and get underwriting started to keep everything on track.

Weeks 4-5: Start Planning the Big Move!

By now you’re through the option period and appraisals. We’ll keep you updated and help collect any final documents needed so you’re ready for closing.

Week 6: Close on the Bridge Loan (Refinance) in Naples, FL!

You’ll close on the bridge loan — unlocking your equity so the funds are ready for your new home purchase. This ensures your down payment or closing costs are covered without needing to sell first.

Week 7: Buy the House in Austin, TX!

Congratulations — you’ve closed on your new home and can move in on your timeline. Now you can list your current home without pressure, make any needed updates, and focus on getting top dollar while you’re already settled.

What are the fees for Equity Unlock?

Equity Unlock functions as a short-term cash-out refinance structured as a bridge loan. That means it includes standard refinance-related closing costs such as the appraisal, title insurance, administrative fees, and lender charges. Exact costs vary by loan amount, property type, and state requirements, but your LendFriend advisor will provide full disclosures upfront before you proceed.

What is the term bridge loan under the Equity Unlock Program before I need to sell my current home?

Most bridge loans are designed for short-term use and the term can vary based on what state your current home is located in.

If your home is located in Texas, the term is up to 120 days.

If your bridge loan is in any other state, whether North Carolina, Florida or California, the term is up to 12 months.

That window gives you time to list and sell your current property without rushing or taking a low offer.

The Buy Before You Sell program through LendFriend helps you secure financing for your new home now while allowing a flexible timeline for the sale of your existing one.

Do I have to make payments on my bridge loan right away?

Not with LendFriend. We offer no-payment bridge loans — meaning you will defer payments until your existing home sells. Interest accrues during this time, but it can be rolled into the loan balance to help preserve your cash flow during the move and focus on just making the mortgage payments on your new home. Any interest due will be taken from sale proceeds.

This flexibility makes bridge loans especially useful for relocating professionals who are buying before their old home closes.

Can I qualify for a bridge loan if I already have a mortgage on my current home?

Yes. You don’t need to own your home free and clear to qualify. Lenders look at your combined loan-to-value (CLTV) — usually allowing borrowing up to 80% of your home’s value (including your existing mortgage).

Example:
If your home is worth $800,000 and you still owe $400,000, you could borrow up to $640,000 (80% of the value). That would leave about $240,000 available for your down payment or purchase of your next home.

Learn more in our guide to bridge loans and how they compare to HELOCs or other short-term financing options.

Is a bridge loan only for single-family homes?

Not at all. Bridge loans can also be used for townhomes, condos, and multi-unit properties depending on lender guidelines.
If you’re purchasing a property in a competitive market like Austin or Dallas, a bridge loan can make your offer stronger by removing the need for a home sale contingency.

How is a bridge loan different from a home equity line of credit (HELOC)?

Both products tap into your home’s equity, but they serve very different goals.

A bridge loan is short-term and specifically designed to help you buy your next home before selling your current one. Payments are often deferred, and the loan doesn’t count against your debt-to-income ratio, making qualification easier.
A HELOC, by contrast, is a revolving line of credit suited for ongoing borrowing (like renovations). Because it increases your monthly liabilities, it can make qualifying for a new mortgage more difficult.

For a detailed comparison, see our article How to Buy a New Home Before Selling Your Current One (Without the Stress).

Meet Equity Unlock