Buy Before You Sell: Bridge Loan in Florida Options, HELOCs and Contingent Offers

A bridge loan in Florida lets you borrow against the home you own now so you can buy the next one before it sells. It is one of four common ways to make that move. The others are a home equity line of credit opened before you list, a buy-before-you-sell program, and a contingent offer. Each one trades cost against speed and offer strength. This guide compares them for Palm Beach County owners who are moving up or downsizing, using the August 2026 market numbers.

Key takeaways

• Bridge loans usually run 6 to 12 months, cost about the prime rate to prime plus 2 points, and need roughly 15% to 20% equity.
• A HELOC can do the same job, but open it before you list. Many lenders will not open one on a home that is for sale.
• Under Fannie Mae rules, the lender counts both house payments unless your current home is under contract and the buyer's financing contingencies have cleared.
• A contingent offer in Florida uses Rider V. The seller can answer with Rider X, a kick-out clause that can cost you the house.
• In August 2026, Palm Beach County houses went under contract in a median 40 days. Condos took 69 days with 6.7 months of supply, so condo owners should plan a longer bridge.

Four ways to buy before you sell

Most people who want to move up or downsize hit the same wall. The money for the next down payment is tied up in the house they live in. There are four common ways to free it up.

1. A bridge loan, which is a short-term loan secured by your current home. It funds the down payment, and you pay it off when the old house sells.
2. A HELOC, a line of credit on your current home that you open before you list and draw on for the down payment.
3. A buy-before-you-sell program, where a company backs your purchase and then your old home is sold.
4. A contingent offer, where your purchase depends on selling your current home first.

The right choice depends on your equity, your income, and how fast your current home is likely to sell. That last part is where local data matters most.

How a bridge loan in Florida works

A bridge loan is short-term debt secured by the home you already own. Bankrate says terms usually run 6 to 12 months, and some are as short as 3 months. You use the cash for the down payment on your next home. Then you repay the loan in full when your current house sells.

Payments vary by lender. Many bridge loans are interest-only, with a balloon payment due at payoff or sale. Some require no payments at all until the home sells. That helps your cash flow while you carry two homes. Still, the full balance comes due on the day you close the sale, so the sale has to happen.

Lenders also want equity. Most ask for at least 15% to 20% equity in the current home, so total borrowing is typically about 80% of its value. For example, take a $650,000 house, the Palm Beach County median for August 2026. At 80%, your old mortgage and the bridge loan together would top out near $520,000.

What a bridge loan in Florida costs

Bridge loans cost more than a standard mortgage. Bankrate puts rates at about the prime rate up to prime plus 2 percentage points. Closing costs can also run into the thousands of dollars. NerdWallet notes that these loans work best in fast-moving markets, because every extra month adds interest.

One lender's published numbers give a sense of scale. On its site, one mortgage lender lists origination fees of 1% to 2.5% and rates of about 8.5% to 11%, repaid in a lump sum when the old home sells. That is one lender's example, not a market average. So get quotes from more than one source before you commit.

Using a HELOC as the bridge

A home equity line of credit can do the same job. The CFPB explains that HELOCs usually have variable rates. The draw period is often about 10 years. After that comes a repayment period of 10 to 20 years with higher payments. Some plans let you pay interest only during the draw, while others want the full balance when the draw ends.

Timing is the catch. Many lenders will not open a HELOC on a home that is listed for sale. So if this is your plan, open the line before you list, even if you do not touch it yet. Lenders also cap the total. Forbes reports that many keep your first mortgage plus the HELOC at around 80% to 85% of the home's value.

The lender can also freeze or cut the line if your home's value falls or your finances change. In other words, the money you counted on may not be there when you need it.

Buy-before-you-sell programs

These programs come from companies, not banks. The company gives you a cash-backed or non-contingent offer, or an advance on your equity. You buy and move first. After that, your old home goes on the market and sells.

Program fees are typically a percentage of the home price, charged on top of agent commissions. For example, Orchard advertises program fees starting as low as 1.9%, plus brokerage fees. However, Orchard sells homes in Florida only in Orlando and Tampa Bay, not in Palm Beach County. Check coverage first, then compare the total cost with a bridge loan or a HELOC.

Contingent offers with Rider V and the Rider X kick-out

The cheapest route costs nothing up front. You make an offer that depends on selling your current home. The Florida Realtors and Florida Bar contracts handle this with Rider V, Sale of Buyer's Property. It lets you cancel if you cannot sell your home. Also note that Florida contracts count time periods in calendar days, so weekends count.

Sellers know the risk, and many will counter with Rider X, the kick-out clause. Under Rider X, the seller can keep taking back-up contracts. If one comes in, you face a short deadline set in the rider. Then you must add to your deposit and waive your contingencies, or you lose the house.

That is the true cost of a contingent offer. You save on loan fees, but your offer is weaker, and you can lose the home at the worst time. Our guide to what contingent means in real estate explains how sellers handle these deals while they wait.

How a bridge loan in Florida compares on cost, speed and offer strength

• A bridge loan has the highest rates and fees of the borrowing options. In return, you can write a non-contingent offer, which sellers like.
• A HELOC often costs less, and it is fast once the line is open. But you have to open it before you list, and the lender can freeze it.
• A buy-before-you-sell program gives you a strong offer. You pay a program fee on top of commissions, and coverage in our area is limited.
• A contingent offer has no borrowing cost. However, it is the weakest offer, and a Rider X kick-out can end the deal.

In practice, many sellers mix and match. For example, they open a HELOC early, then price the current home to sell quickly so the line gets paid off within months.

Qualifying for two payments with a bridge loan in Florida

You still need a mortgage on the new home, and that lender has to believe you can carry both. Under the Fannie Mae Selling Guide, if your current home is pending sale but will not close before the new purchase, the lender must count both payments. That means principal, interest, taxes, insurance and any association dues on each home.

The lender can leave out the old payment only if you have an executed sales contract and proof that the buyer's financing contingencies are cleared. A signed contract alone is not enough, because your buyer needs to be well along in their own loan.

For many move-up buyers, this two-payment math decides the plan. So before you write any offer, ask a lender to run your numbers both ways.

Counting rent from the home you leave

Some owners keep the old home and rent it out. Fannie Mae lets rent from a departing home count, but a lease alone is not proof. The lender needs market rent backed by an appraisal (Form 1007) or at least three comparable rentals. Then it uses 75% of the gross rent, minus that home's full payment.

Experience matters too. If you have less than 12 months of experience managing rentals, you need 6 months of reserves to cover the departing home's payment.

Why timing risk differs for houses and condos in Palm Beach County

A bridge loan is a bet on how fast your current home sells. The August 2026 report from Miami Realtors and RWorld, built on Miami MLS and BeachesMLS data, shows two very different markets.

Single-family homes

Single-family homes in Palm Beach County had a median sale price of $650,000, up 3.17% from $630,000. The median home went under contract in 40 days, down from 46. Sellers got a median 95% of list price. Supply was tight at 3.5 months, with 4,345 active listings, down 23.8% from 5,702. Closed sales slipped 2% to 1,112.

For a seller, that is good news. A well-priced house can go under contract and close inside a typical 6 to 12 month bridge term. But tight supply cuts both ways. The homes you want to buy draw competition too, so a non-contingent offer carries more weight.

Condos and townhouses

Condos and townhouses moved more slowly. The median price rose 5.26% to $300,000, but the median time to contract was 69 days, down from 74. There were 6.7 months of supply and 5,770 active listings, down 17.1%. Closed sales fell 6.71% to 765, and sellers got a median 93% of list price.

If you are selling a condo to buy a house, plan a longer bridge. Ask for a term that covers a slow sale, and run your budget as if the condo takes longer than the median. Pricing it right from day one also lowers the risk.

Why pricing comes before a bridge loan in Florida

Every option above depends on one number: what your current home will sell for, and how fast. That number sets your equity, your loan limit, and how long you carry two payments. If you guess high, the house sits. Then a short bridge turns into an expensive one.

So start with the sale. Get a value from recent sales near you, not a portal estimate. Next, work out your net after commissions, closing costs and the mortgage payoff. Our breakdown of what it costs to sell a house walks through those numbers. Once you know your net, a lender can tell you which option fits.

Pure Equity does not make loans or buy homes. Instead, we help sellers in places like Boca Raton, Jupiter, Wellington and West Palm Beach price and time the sale, then find the next home. We put the sale first, because it funds the move.

Frequently asked questions

How long does a bridge loan in Florida last?

Most bridge loans run 6 to 12 months, and some are as short as 3 months. You repay the loan when your current home sells, often in one lump sum.

Is a HELOC cheaper than a bridge loan in Florida?

Often, but it depends on the lender and how long you hold it. HELOCs usually have variable rates. Bridge loans run about prime to prime plus 2 points, plus closing costs. Timing is the bigger issue, because many lenders will not open a HELOC on a listed home.

Can I qualify for a new mortgage while I still own my current home?

Yes, if your income covers both payments. Under Fannie Mae rules, the lender counts both unless your home is under contract and the buyer's financing contingencies have cleared.

What is a kick-out clause in a Florida contract?

It is Rider X. It lets the seller keep taking back-up offers. If one arrives, you must add to your deposit and waive your contingencies by a short deadline, or the seller can move on.

How much equity do I need for a bridge loan?

Most lenders want at least 15% to 20% equity in your current home. Total borrowing on that home is typically capped near 80% of its value.

Sources

• Bankrate, What is a bridge loan
• NerdWallet, Bridge loans
• AP Mortgage, Bridge loans: buy before you sell
• CFPB, What is a home equity line of credit
• CFPB, What you should know about HELOCs (brochure)
• Forbes Advisor, HELOC requirements
• Fannie Mae Selling Guide, B3-6-06, other real estate owned
• Fannie Mae Selling Guide, B3-3.8-05, departing residence rental income
• Florida Realtors, contract law library
• Florida Realtors, optional clauses, riders and addenda
• Orchard, FAQ
• Miami Realtors, Palm Beach County August 2026 market report

This article is general information, not legal, tax or financial advice. Loan terms change and depend on your situation, so talk with a licensed lender, attorney or tax professional before you decide.

Want to buy before you sell? Start with the home you own. Pure Equity will price your current home, show you how fast similar homes are selling, and plan the timing around your next purchase. Get a free home valuation or talk to a listing agent. Ready to shop for the next place? Our buyer agents can start the search as soon as your plan is set.