Bridge Loans in Seattle: How They Work & Alternatives (2026)

How does a bridge loan work? A bridge loan is short-term financing secured by the home you already own. It lets you use your current home’s equity toward the down payment (and sometimes more) on your next home before your current home sells. When your current home sells, the bridge loan is paid off from the sale proceeds. It can let you make a stronger offer without a sale contingency, but it usually costs more than a standard mortgage and depends on your current home actually selling.

I’m Aaron Yoon, a broker with eXp Realty serving Seattle and the surrounding area, including Bellevue, Kirkland, Redmond and Snohomish County. My focus is helping homeowners sell for top dollar by solving the problems others walk away from. Bridge financing comes up often when clients buy and sell at the same time, so this guide covers how it works, what to ask a lender and when an alternative might fit better. For the full picture, start with my guide to buying and selling a home at the same time in Seattle.

Financing information on this page is educational only and is not a loan offer or a commitment to lend. Rates, fees and terms vary by lender and borrower and change often. Talk to a licensed mortgage lender about your specific situation.

What is a bridge loan in real estate?

A bridge loan (sometimes called a swing loan) “bridges” the gap between buying your next home and selling your current one. Most move-up buyers in the greater Seattle area have a large share of their wealth tied up in home equity. Without a way to reach that equity early, the choices are usually to sell first, or to write an offer that depends on your sale. A bridge loan is one way to unlock that equity before you list or before you close.

Bridge loans are offered by some banks, credit unions and mortgage lenders, and structures vary widely. Some are stand-alone loans; others are bundled with your new purchase loan in a “buy before you sell” program.

How does a bridge loan work, step by step?

Every lender structures it differently, but the general sequence looks like this:

Equity review. The lender estimates your current home’s value and subtracts what you owe to see how much equity you could borrow against. Most lenders will only lend against part of that equity.
Qualification. The lender reviews your credit, income, assets and debt-to-income ratio. Some lenders count both housing payments when qualifying you; others have programs that treat the departing home differently. Ask which approach applies to you.
Funding. The bridge loan is recorded against your current home. The funds go toward the down payment and closing costs on your next home, and in some structures the bridge also pays off your existing mortgage.
Buying. You write an offer on your next home, often without a home sale contingency, which can make it more competitive.
Selling. You list and sell your current home. At closing, the bridge loan (and any remaining mortgage) is paid off from the proceeds.

Some bridge loans require monthly payments. Others let interest accrue and get paid at the end. The term is usually short, often measured in months, and some lenders allow extensions for a fee.

What does a bridge loan cost? Questions to ask a lender

I won’t quote rates or fees here, because they vary by lender and by borrower and they change often. Instead, here are the costs to ask about so you can compare quotes side by side:

Interest rate: [LENDER QUOTE: typical bridge loan rate], and whether it is fixed or variable.
Origination or lender fees: [LENDER QUOTE: typical bridge loan origination fee].
Appraisal, title, escrow and recording costs on the bridge loan itself, separate from your purchase loan.
Payment structure: monthly payments, interest-only, or interest that accrues until your home sells.
Term and extensions: how long the bridge lasts, and what happens (and what it costs) if your home hasn’t sold by then.
Prepayment rules: whether there is any penalty or minimum interest if your home sells quickly.
How much equity you can access: [LENDER QUOTE: typical maximum combined loan-to-value for a bridge loan].
Qualification rules: whether both housing payments count against your debt-to-income ratio.

Ask for a written estimate of total cost under two scenarios: your home sells fast, and your home takes longer than expected. The second number is the one that tells you whether the plan still works for your budget.

What are the pros and cons of a bridge loan?

Potential advantages:

You can write an offer without a home sale contingency, which sellers often prefer.
You move once, directly from your current home into your next one.
You can prepare, stage and market your current home after you’ve moved out, which often helps it show better.

Potential drawbacks:

Bridge loans generally cost more than a standard mortgage.
You may carry two housing payments, plus two sets of utilities, insurance and property taxes, until your home sells.
If your home takes longer to sell than planned, or sells for less than expected, the cost goes up and your options narrow.
Qualification can be stricter because the lender is effectively betting on your sale.

The biggest risk isn’t the loan. It’s an unrealistic sale plan. That’s why pricing, preparing and marketing your current home correctly matters so much when you buy first.

What are the alternatives to a bridge loan?

A bridge loan is one tool, not the only one. Depending on your situation, one of these may fit better:

HELOC (home equity line of credit)

A HELOC is a revolving line of credit secured by your current home. Some buyers open one before listing and draw on it for the down payment on the next home, then pay it off at the sale. It can cost less than a bridge loan, but you generally need to open it before your home is listed, rates are often variable, and the payment usually counts toward your debt-to-income ratio. Ask your lender about [LENDER QUOTE: typical HELOC rate and fees].

Cash-out refinance

A cash-out refinance replaces your current mortgage with a larger one and pays you the difference. It’s less common for a short-term move, because it adds closing costs on a home you’re about to sell, but your lender can tell you if it fits.

Buy-before-you-sell programs

Several companies and lenders offer programs that help you buy first. Depending on the program, they may provide the down payment, commit to a backup offer on your current home under the program’s own terms, or buy your next home with cash and sell it to you later. Each program has its own fees, eligibility rules and service areas. Compare the total cost against a bridge loan or HELOC, and confirm the program operates in your part of King or Snohomish County.

Sell first with a rent-back

If carrying two homes doesn’t fit your budget, selling first and negotiating a seller rent-back lets you stay in your home for a set period after closing. You get your equity out before you buy and still move once.

Contingent offer

You can also make your purchase depend on your sale. It costs nothing to finance, but it can be less competitive. See my guide to contingent offers in Washington.

Bridge loan vs. HELOC: which is better?

Neither is better for everyone. A HELOC is often worth exploring if you’re planning early, haven’t listed yet and qualify comfortably. A bridge loan may fit better if you’re already listed, need more of your equity or want a product built for buying before selling. A lender who handles these transactions regularly can run both scenarios side by side.

Who is a bridge loan a good fit for?

A bridge loan tends to fit homeowners who:

Have substantial equity in their current home.
Have income and reserves that can handle overlap for a while, based on a lender’s review.
Are buying in a competitive segment where contingent offers struggle.
Own a home that is likely to sell in a reasonable time once it’s priced and prepared well, though no sale is ever certain.
Want to move once and prepare the house for market after moving out.

It’s usually a weaker fit if your budget is tight, if your home is unusual or hard to price, or if you’d lose sleep carrying two payments. In those cases, selling first or a rent-back may be the calmer path.

What does the local market mean for your bridge loan plan?

How long you might need the bridge depends on how quickly homes like yours are selling. Before you commit, look at current numbers for your neighborhood:

[LOCAL STAT: median days on market, Bellevue, source NWMLS]
[LOCAL STAT: median days on market, Snohomish County, source NWMLS]
[LOCAL STAT: months of inventory, King County, source NWMLS]

Conditions differ by city and neighborhood; see my cities page for local notes. On a call, I’ll help you build a realistic sale timeline, which is the number your lender will want to see.

Ready to make a plan?

Every move is different. Book a call with Aaron to talk through your timing, equity and options, or get a no-obligation estimate of what your current home could sell for.

Book a call with Aaron

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Frequently asked questions about bridge loans

Can I get a bridge loan if my house isn’t listed yet?

Often, yes. Some lenders want the home listed or under contract, and others don’t. Requirements vary, so ask each lender directly. If you haven’t listed yet, it’s also a good time to compare a HELOC, since many lenders won’t open a HELOC on a home that’s already for sale.

Isn’t a bridge loan too expensive?

It does usually cost more than a standard mortgage. The fair comparison is against the alternatives: a lower price on a rushed sale, a contingent offer that loses to a clean one, or moving twice. Get a written estimate for both a quick sale and a slow sale, then decide whether the cost is worth what it buys you.

What happens if my house doesn’t sell before the bridge loan is due?

That depends on the loan terms. Some lenders offer extensions for a fee. Your strongest lever is a realistic price and a well-prepared home from day one, plus a fallback plan such as a price adjustment you’ve agreed on in advance.

Do I have to qualify for two mortgage payments?

Some lenders count both payments, and some programs treat the departing home differently. It depends on the lender and the program. A licensed lender can tell you how your income and debts would be evaluated.

Is a bridge loan better than a contingent offer?

Not always. A bridge loan can make your offer more competitive, but it adds cost and carrying risk. A contingent offer costs nothing to finance but can be harder to get accepted. My sell first or buy first guide walks through how to choose.

Can you help me find a bridge loan lender?

I’m not a lender and can’t offer loans, but I can introduce you to local lenders who regularly handle buy-before-you-sell financing, and help you compare their options against your sale plan. More common questions are on my FAQ page.

Talk through your move with Aaron