What is the difference between a bridge loan and a HELOC?

A bridge loan is short-term borrowing built to cover the gap between buying and selling and repaid from the sale proceeds. A line of credit is a longer-term revolving facility secured against equity that happens to be useful here rather than designed for it.

Timing usually decides it before cost does. A line of credit generally has to be in place before you list, because lenders are typically unwilling to open one against a property already on the market. Bridge financing does not have that obstacle.

Can I get a HELOC after listing my house?

Usually not. Lenders are generally unwilling to open a line of credit secured against a property that is on the market. If you are even considering one, arrange it before listing, because afterwards the option may simply have closed.

Both vary by lender, borrower and timing, and we are not going to quote figures because any number here would be stale. Ask two or three lenders for written terms on both, including setup costs and rate basis. That is the only comparison worth making.

What do lenders look at?

Equity in the security property, income and existing obligations including the mortgage you will still carry, the saleability of the property you are selling, your exit, and credit history. The strength of your exit distinguishes an easy application from a hard one.

What happens if my house takes longer to sell?

You carry the cost longer, and with a variable rate facility the cost can also move while you hold it. Both products assume the sale happens on something like the expected timeline. Pricing the property to sell is the real protection.

Are there other options?

A cash-out refinance before listing, portfolio or relationship lending, borrowing against other assets, programmes built specifically for buying before selling, and family lending. A good mortgage broker will lay out the realistic ones in a single conversation.

Should I use the sale price or the net proceeds in my plan?

Net proceeds, always. The sale price is gross, and brokerage compensation, payoff, taxes, title and prorations all come out of it. Lenders increasingly want to see the numbers hold at a realistic price rather than a hoped-for one.

Can you recommend a lender?

We will not tell you which product or lender to take, because that is a regulated conversation and the right answer depends on your circumstances. What we provide is the valuation, the net sheet and realistic timing, which is what any lender will ask you for.

Can I use a bridge loan and a line of credit together?

Some borrowers do, though stacking borrowing against the same equity has limits and lenders will look at the total picture. Whether it is available and sensible is a question for a mortgage broker who can see all your circumstances at once.

What if I have no mortgage on my current home?

Your options widen considerably, because the equity is unencumbered and there is no existing payment counting against you. That usually makes both products easier to arrange and cheaper, and it may mean you need neither.

Bridge loans vs HELOCs for move-up buyers

Bridge loans vs HELOCs for move-up buyers is a question about timing as much as cost. Both let you access equity in a property you still own. The practical difference is when each has to be arranged, and that difference decides the answer far more often than the pricing does.

Free Home Valuation

Every situation on this page comes down to a number: what the property is worth and what you would net. We will work both out from recent sales near you, at no cost.

What each product is for

A bridge loan is short-term borrowing intended to cover the period between buying and selling.

It is designed to be repaid from the proceeds of the property you are selling.

A home equity line of credit lets you draw against equity in a property you own, usually revolving.

It is a longer-term facility that happens to be useful in this situation rather than built for it.

Both end up doing the same job: providing funds before the sale completes.

They differ in how they are underwritten, when they can be arranged and how they are repaid.

The timing difference that usually decides it

A line of credit generally has to be in place before you list the property it is secured against.

Lenders are typically unwilling to open one on a property that is on the market.

So if you have already listed, that option may simply have closed.

Bridge financing is arranged with the sale in view and does not have the same obstacle.

This single point resolves the choice for a lot of people without any comparison of cost.

If you are even considering a line of credit, arrange it before listing rather than afterwards.

How repayment differs

A bridge loan is repaid from the sale proceeds and the arrangement ends there.

A line of credit continues after the sale unless you close it, which requires repaying the drawn balance.

If the property securing the line is the one being sold, it is repaid at closing regardless.

If it is secured against a different property, it can continue afterwards.

That distinction affects whether you are left with a facility or with nothing.

Neither outcome is better in the abstract; it depends on whether you want ongoing access.

Cost, without stating numbers

Both carry costs, and both vary by lender, by borrower and over time.

Bridge financing is short term and typically prices accordingly.

A line of credit is usually variable rate, which means the cost can move while you hold it.

Setup costs, draw fees and minimum terms all differ between products and lenders.

We are not going to quote rates, because any figure here would be stale and misleading.

Ask two or three lenders for written terms on both, which is the only comparison that means anything.

What lenders look at

Equity in the property being used as security.

Income and existing obligations, including the mortgage you will still be carrying.

The saleability of the property you are selling, which some lenders assess directly.

Your exit, meaning how and when the borrowing gets repaid.

Credit history, as with any borrowing.

The strength of your exit is what most distinguishes a straightforward application from a difficult one.

Other routes worth asking about

A cash-out refinance before listing, which is a larger change and has its own timing constraint.

Portfolio or relationship lending, where a bank you already deal with will structure something.

Borrowing against other assets entirely, which avoids involving either property.

Programmes built specifically around buying before selling, which some lenders market directly.

Family lending, which is common and should still be documented properly.

A good mortgage broker will lay out the realistic options in one conversation.

Risks worth being clear about

Both assume the sale happens on something like the expected timeline.

If the property takes longer, you carry the cost longer.

If it sells for less than planned, the repayment maths changes.

Variable rates on a line of credit can move while you are holding a balance.

Short-term borrowing arranged in a hurry is rarely on the best available terms.

The protection against all of this is pricing the property to sell rather than to test the market.

How your sale figures into it

The lender's view of your exit depends on what your property is realistically worth.

An optimistic valuation makes the application look better and the plan work worse.

A written net sheet showing proceeds after costs is the figure that matters, not the sale price.

Lenders increasingly want to see that the numbers hold at a realistic price rather than a hoped-for one.

Providing an honest valuation strengthens rather than weakens the application.

We produce that figure, and we will not inflate it to help a loan application.

Questions to put to a lender

What can I borrow while still owning my current property?

Can this be arranged after I list, or does it have to be in place beforehand?

How is it repaid, and what happens if my sale takes longer than expected?

What are the total costs including setup, and what is the rate basis?

Is there a minimum term or an early repayment cost?

Get the answers in writing, because verbal indications have a way of changing.

What we contribute to this decision

An honest valuation of the property you are selling, which underpins every version of the plan.

A net sheet showing proceeds after costs rather than a headline price.

Realistic timing based on what comparable properties in your community are actually taking.

Preparation of the listing so it can launch the moment you are ready.

We do not recommend lenders or products, and we will not tell you which to take.

Ask us for the figures and take them to two or three lenders before deciding.

This page explains how the money side of a Florida sale works so you can plan around it. It is not legal or tax advice. Tax on your sale belongs with an accountant, and the legal effect of your contract belongs with a Florida attorney. What we can give you is an accurate figure for what your home is worth and what you would net, which is the input both of those conversations need.

Frequently Asked Questions

What is the difference between a bridge loan and a HELOC?: A bridge loan is short-term borrowing built to cover the gap between buying and selling and repaid from the sale proceeds. A line of credit is a longer-term revolving facility secured against equity that happens to be useful here rather than designed for it.
Which should I use?: Timing usually decides it before cost does. A line of credit generally has to be in place before you list, because lenders are typically unwilling to open one against a property already on the market. Bridge financing does not have that obstacle.
Can I get a HELOC after listing my house?: Usually not. Lenders are generally unwilling to open a line of credit secured against a property that is on the market. If you are even considering one, arrange it before listing, because afterwards the option may simply have closed.
What do they cost?: Both vary by lender, borrower and timing, and we are not going to quote figures because any number here would be stale. Ask two or three lenders for written terms on both, including setup costs and rate basis. That is the only comparison worth making.
What do lenders look at?: Equity in the security property, income and existing obligations including the mortgage you will still carry, the saleability of the property you are selling, your exit, and credit history. The strength of your exit distinguishes an easy application from a hard one.
What happens if my house takes longer to sell?: You carry the cost longer, and with a variable rate facility the cost can also move while you hold it. Both products assume the sale happens on something like the expected timeline. Pricing the property to sell is the real protection.
Are there other options?: A cash-out refinance before listing, portfolio or relationship lending, borrowing against other assets, programmes built specifically for buying before selling, and family lending. A good mortgage broker will lay out the realistic ones in a single conversation.
Does my property valuation affect the application?: Yes, because the lender's view of your exit depends on what the property is realistically worth. An optimistic valuation makes the application look better and the plan work worse. We will not inflate a figure to help a loan application.
Should I use the sale price or the net proceeds in my plan?: Net proceeds, always. The sale price is gross, and brokerage compensation, payoff, taxes, title and prorations all come out of it. Lenders increasingly want to see the numbers hold at a realistic price rather than a hoped-for one.
Can you recommend a lender?: We will not tell you which product or lender to take, because that is a regulated conversation and the right answer depends on your circumstances. What we provide is the valuation, the net sheet and realistic timing, which is what any lender will ask you for.
Can I use a bridge loan and a line of credit together?: Some borrowers do, though stacking borrowing against the same equity has limits and lenders will look at the total picture. Whether it is available and sensible is a question for a mortgage broker who can see all your circumstances at once.
What if I have no mortgage on my current home?: Your options widen considerably, because the equity is unencumbered and there is no existing payment counting against you. That usually makes both products easier to arrange and cheaper, and it may mean you need neither.

Buy before you sell: how it actually works

Buy before you sell means funding two properties briefly. The routes lenders offer, what each costs, and how to decide whether the overlap is worth it.

Contingent offers: will a Palm Beach seller accept one?

Contingent offers when selling and buying: what makes them weak, how to strengthen yours, and how to evaluate one if you receive it as a seller.

Using sale equity to buy an investment property

Using equity from your sale to buy an investment property: what the net figure really is, what lenders treat differently, and the tax questions to ask first.

From the Journal

Home Selling Tips

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

Home Selling Tips

Can You Sell a House With a Mortgage? What Happens to Your Loan, HELOC or Second Mortgage When You Sell a Florida Home

Home Buying Tips

Can I Get a No-Appraisal Home Equity Loan?

Work out your numbers

What is my home worth?

A valuation built from closed sales in your own community, with the comparables named.

Estimate your net proceeds

Work the commission, documentary stamps and closing costs against your own number.

Current market reports

Prices, days on market and inventory for the counties we cover, updated monthly.

How we list a home

What we do between the listing agreement and the closing table, phase by phase.

Talk It Through

Tell us the situation and we will tell you what it is worth

Most of what makes a sale complicated is solvable once somebody has looked at the actual numbers. Onias Derilus is a licensed Florida broker and there is no cost to a conversation, whether you list this month or next year.

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