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Bridge Loans in the Sacramento Region
Ways to buy your next home before you sell this one, with the cost and risk of each path laid out.
Talk to Maggie directly: cell (916) 549-3131 (text or call) · maggie@loveyoursurroundings.coMaggie B. Hopkins, NMLS #349517 · Surroundings NMLS #2528307
Why is it so hard to buy your next home before you sell this one?
Most of your down payment is probably sitting in the home you live in now. Until it sells, that money isn't in your hands. Meanwhile, the home you want may not wait.
So you're choosing between a few trade-offs. Sell first and risk a gap before you move. Buy first and carry two homes for a while. Or make your purchase depend on your sale and risk losing the house you want. None of these is wrong. Each one has a cost, and the right one depends on your equity, your income and your nerves.
Maggie B. Hopkins is a real estate broker and a mortgage broker. That means the sale, the purchase and the loan can sit on one timeline, planned by one team. You can still use any lender or agent you like.
What is a bridge loan?
A bridge loan is a short-term loan secured by your current home. It gives you cash for the down payment on your next home before your current one sells. When the sale closes, the bridge loan is paid off from the proceeds.
Because it's secured by the home you live in now, a bridge loan comes with a federal right to cancel. The official commentary to Regulation Z, the federal Truth in Lending rule (checked October 22, 2026), says a loan secured by the equity in your current principal home, such as a bridge loan, carries the right of rescission. That's a short window after closing when you can cancel in writing.
Not every lender offers bridge loans, and the ones that do set their own terms. We compare what's available and show you the full cost, including what happens if your home takes longer to sell than you hope.
Can you use a home equity line on your current home instead?
Yes, and many owners do. A home equity line of credit (HELOC) lets you borrow against the home you live in now. You draw what you need for the down payment, then pay the line off when the home sells.
Timing matters. Lenders differ on whether they'll open a new line on a home that's already listed for sale, so ask before you list. Setting it up first keeps that door open. You'll also need to qualify for the line, and most HELOCs have a variable rate. Our home equity line page explains how the draw and repayment periods work.
The bigger question is whether you can carry everything at once. Your new loan, your current loan and the line may all have payments for a while. We put those months on paper before you commit.
What is a contingent offer, and when does it make sense?
A contingent offer makes your purchase depend on selling your current home. If your home doesn't sell in time, you can usually step away from the purchase under the terms of the contract.
It protects you from owning two homes. The trade-off is that many sellers see it as a weaker offer, because their sale now depends on yours. When several buyers want the same home, a contingent offer can lose to one that isn't.
It tends to work better when your home is priced right, already listed or in contract, and the market for your kind of home is moving. Since we can see both sides, we can tell you honestly how your contingency is likely to look to a seller.
What is a rent-back, and how does it help?
A rent-back lets you sell first and stay in your home for a short time after closing. The buyer owns the home, and you rent it back until you can move. That gives you your sale money in hand while you buy the next place.
It's a contract term, not a loan. The length, the rent, the deposit and who insures what all need to be written down clearly. Some buyers will agree to it. Others won't, or they'll ask for something in return.
For many downsizers, selling first with a rent-back is the calmest path. You know exactly what you have to spend, and you only move once.
Can a reverse mortgage help you buy if you're 62 or older?
It can. A HECM for Purchase is a reverse mortgage you use to buy a new home. The CFPB explains it on its page about using a reverse mortgage to buy a home (last reviewed July 11, 2022). You must be 62 or older, and the new home must be your principal residence.
The CFPB lays out how it works. You pay the difference between the loan proceeds and the price, plus closing costs, in cash. You don't make monthly loan payments. You do have to live in the home, keep it up and pay your property taxes and insurance on time. Some properties don't qualify, including cooperative units and some manufactured homes.
For a downsizer, the cash you put in often comes from selling your current home. That makes it a sell-first plan in most cases. Our HECM for Purchase page and reverse mortgage page go deeper.
What does carrying two homes really cost?
If you buy first, plan for at least a few months of owning both homes. That means two mortgage payments, or a mortgage plus a line or bridge loan. It also means two sets of property taxes, insurance, utilities and upkeep.
The lender will usually want to see that you can handle the payments on both homes, not just the new one. That's often the real limit on buying first, more than your equity.
The house you're selling also needs to show well while you're moving out. Our turnkey home prep service can handle repairs and staging so the sale isn't the thing that drags. Our mortgage calculator helps you test the monthly side.
How do you choose the right path?
Here's a plain way to sort it:
- Plenty of income and equity, and you've found the home: a bridge loan or a HELOC set up before you list may let you buy first.
- You want certainty about your budget: sell first, ideally with a rent-back.
- Your home will sell quickly and the market is calm: a contingent offer may work.
- You're 62 or older and want no monthly mortgage payment: look at a HECM for Purchase, usually after you sell.
Not sure you're ready to move at all? Our is it time to downsize page can help you think it through first.
How do you start a buy-before-you-sell plan?
Fill out the loan options form and tell us about both homes: the one you have and the one you want. Maggie will look at it and get back to you within 2 hours. You can also call Maggie's cell at (916) 549-3131 or send us a note.
Have your current mortgage statement, a rough idea of your home's value and your recent income documents handy. We'll lay out each path with its costs, side by side.
Frequently Asked Questions
What is a bridge loan?
A bridge loan is a short-term loan secured by your current home. It covers the down payment on your next home until your current home sells, and it's paid off from the sale.
Can I use a HELOC to buy my next home before I sell?
Many owners do. It usually works best when the line is opened before your home is listed, since lenders differ on opening a line on a home that's for sale. You'll also need to qualify for the payments.
Is a contingent offer a bad idea?
Not always. It protects you from owning two homes, but many sellers see it as weaker. It tends to work better when your home is priced right and likely to sell quickly.
What is a rent-back?
A rent-back lets you sell your home and stay in it for a short time after closing. You rent from the new owner until you move. The terms need to be written into the contract.
Can I use a reverse mortgage to buy a smaller home?
Yes, if you're 62 or older. The CFPB explains that a HECM for Purchase lets you buy a new principal residence. You pay the rest of the price and closing costs in cash, often from selling your current home.
Talk to Maggie directly: cell (916) 549-3131 (text or call) · maggie@loveyoursurroundings.coMaggie B. Hopkins, NMLS #349517 · Surroundings NMLS #2528307
Loans are arranged through Maggie B. Hopkins, NMLS #349517 · Surroundings NMLS #2528307. This is not a commitment to lend. All loans subject to credit approval and property qualification. Equal Housing Lender.
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