Bridge Loans in Salt Lake City: How to Unlock Home Equity to Buy Before You Sell

Published on July 27th, 2026
11 min read

Chloe Chahrouri Associate Editor
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Chloe Chahrouri Associate Editor

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Chloe Chahrouri is an associate editor for HomeLight. She holds a bachelor’s degree in creative writing, with a minor in professional and technical writing, from San José State University. She most recently worked as a copy editor on Reed Magazine's Issue 158 and won first place in fiction from Leaf by Leaf Magazine. When she’s not writing, she’s usually trying a new craft or experimenting with a recipe.

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Between the mountains on one side and the lake on the other, Salt Lake Valley isn’t getting any bigger. So if you’re feeling limited — not only in your house search, but also in trying to sell your current home — bridge loans in Salt Lake City can give you more flexibility.

A home sale contingency can be a dealbreaker for many sellers, so if you’re trying to buy a turnkey home or move south toward the Silicon Slopes, it can get frustrating if you keep missing out on the right home.

Bridge loans are used to unlock your equity so you can buy before you sell. However, you’re not limited to that option. There are other ways you can make stronger offers and avoid the stress of managing two different transactions, so it depends on your goals.

We’ll guide you through how bridge loans in Salt Lake City work, what they might look like for your situation, and how today’s Buy Before You Sell programs can give you more flexibility when looking for your next home.

With HomeLight Buy Before You Sell, you can make a strong, non-contingent offer on your new home without waiting to sell your current home. This modern bridge solution unlocks the equity in your existing property, streamlining the entire process so you win the home you want — and move only once.

What is a bridge loan, in simple words?

A bridge loan is effectively what the name suggests: it’s a short-term loan used to “bridge” the gap between buying a new house and selling your current one.

Other names for bridge loans include:

Bridge financing
Interim financing
Gap financing
Swing loans
Bridging loans

You could also think of it as a financial safety net, because it lets you tap into your current home’s equity to use as a down payment on your next one, before your current house has actually sold. Then, you use the proceeds from the sale of your old home to pay off the bridge loan entirely.

How could this benefit you? The main reason is that you can buy a new house without making your offer contingent on selling your old one first.

Because bridge loans are specialized and temporary products, they usually have higher interest rates than traditional mortgages. But for many buyers in Salt Lake City, the cost can be worth it if you don’t want to deal with a rushed sale, finding a temporary place, or the cost of moving twice.

How do bridge loans in Salt Lake City work?

You might need a bridge loan if you’re trying to secure the right home for your family in Draper, South Jordan, or another growing community before your current home has sold.

In this case, you can use the equity from your existing home to cover the down payment and closing costs on your new purchase.

Oftentimes, the lender handling your new mortgage will also offer a bridge loan. A requirement is usually that your current home is actively listed for sale, and they’ll typically extend the bridge loan for six months to one year.

Your lender may also need to calculate your debt-to-income (DTI) ratio, which could include your old mortgage payment, your new mortgage payment, and any interest-only payments on the bridge loan.

To qualify for a bridge loan in Salt Lake City, most lenders require:

Significant home equity
Good credit
Sufficient income
An active listing for your current home

If you’ve already found a buyer and their loan is approved, your lender might ignore your old house payment for now since the sale is expected to close soon. This would ensure you’re financially covered if the closing process for your old home is delayed.

What does a bridge loan look like?

You’ll find that bridge loans can be structured in various ways, so the example calculator below can help you visualize what a bridge financing solution might look like.

Adjust the values to see an estimated monthly interest payment, available proceeds, and the balloon payment due when the loan is repaid.

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Is a bridge loan the best way to buy before you sell in Salt Lake City?

Bridge loans used to be one of the few options homeowners had to access their equity before selling, but you can choose from a lot more today.

In addition to traditional bridge financing, some companies now offer modern Buy Before You Sell programs designed specifically to solve the challenges of buying and selling at the same time.

These programs can help homeowners:

Easily access home equity before selling
Make non-contingent offers
Move only once
Prepare and market their old home after moving out

These newer options are often worth comparing to a standard bridge loan, especially if you’re a Salt Lake City homeowner who needs more certainty and wants to avoid the stress of moving your family multiple times.

In a recent HomeLight Lender Insights survey, 35% of loan officers identify modern Buy Before You Sell programs as the most effective approach for homeowners buying before selling — beating out contingent offers, traditional bridge loans, and HELOCs.

A simpler alternative: HomeLight Buy Before You Sell

HomeLight’s Buy Before You Sell program was made to help homeowners unlock equity from their current property so they can purchase their next home before selling.

Together with your real estate agent, you can:

Unlock equity from your current home
Make a more competitive offer on your next home
Transition into your new home before putting your old one on the market
Stage and show your old home after you’ve moved out

How HomeLight Buy Before You Sell works

Apply with no obligation

Find out whether your home qualifies and receive an estimate of how much equity you can unlock.

Give yourself leverage on your next home purchase

Use your unlocked equity to make a competitive offer without a home sale contingency.

Sell your former home without being rushed

You can list your previous home after you’ve already moved, making it easier to prepare and even stage for buyers to get the strongest offer possible.

To learn more or get started, visit homelight.com/buy-before-you-sell.

The benefits of bridge financing

Benefits of bridge financing	Additional benefits with Buy Before You Sell
Access your equity upfront	A simplified, guided process
Make stronger, non-contingent offers	Move fast when the right house hits the market
Avoid moving twice	Sell your home once it’s vacant
Buy on your timeline	Potentially maximize your sale price

Both of these approaches are designed to help you buy your next home before selling your current one, which is likely your main goal. What you choose depends on your other priorities.

You might consider the Buy Before You Sell program by HomeLight if you want both financing and selling support from top Salt Lake City experts in one experience.

What should you consider before using a bridge loan?

Bridge financing can be a good idea if you want a more comfortable transition window, but think about the potential tradeoffs before moving forward.

Higher pricing: They often come with more expensive rates and fees than traditional mortgages.
Stricter standards: Lenders may require you to have enough income and equity, plus strong credit.
Payment overlap: You might find yourself managing both house payments at once (depending on how the loan is structured).
Dependent on your sale: If your current property takes longer to sell, your financing costs may increase.
Fewer options available: Not all lenders offer bridge loans, so finding the right program can take more research.

When is a bridge loan a good solution in Salt Lake City?

A bridge loan may make sense if:

Need equity from your current home for a down payment
Can’t risk letting a home you want sit on the market, especially if you’re trying to upsize for your family’s needs
Your offer keeps losing out to buyers who don’t have contingencies attached
Need to relocate for a tech or healthcare job that moves fast
Want to move out before preparing your current home for sale
Want to move directly into your new house without waiting
Can comfortably qualify for both transactions

How much does a bridge loan cost in Salt Lake City?

Bridge loans in Salt Lake City often carry interest rates between 8% and 12%, with origination and closing fees adding an extra 1% to 3% of the total loan amount. The exact cost will rely on your loan-to-value (LTV) ratio, credit score, property type, and the lender you work with.

Home values tend to get higher as you move from the valley floor up into the East Bench or into expanding tech-hub communities. Buyers purchasing in those markets often need larger bridge loans, which can increase the total amount paid in interest.

If you want to get a general idea of how different loan amounts and rates may affect your monthly payments and payoff costs, try out the bridge loan snapshot tool above.

Who provides bridge loans in Salt Lake City?

Because of underwriting requirements (rules you have to meet to prove you can pay back a loan), fewer institutions offer bridge loans. The most common places to find one are:

Mortgage lenders
Regional banks
Credit unions
Hard-money lenders in Salt Lake City
Non-qualified mortgage (non-QM) lenders

Because their products are often different, it’s worth comparing multiple lenders before applying.

Are there other alternatives to bridge loans in Salt Lake City?

There are other ways to access your equity before buying your next home.

If your upcoming move involves trading a starter home for a turnkey property along the Wasatch Front or trying to ensure an easier commute, exploring these equity alternatives can help you find a strategy that fits your situation.

Home equity loan

A home equity loan lets you borrow a lump sum of cash upfront, using your home’s earned equity as collateral. You’ll then repay it in fixed monthly installments.

It’s worth considering if you know your exact costs and want budget certainty, but it does mean carrying an extra loan until your current home sells.

Home equity line of credit (HELOC)

A HELOC works more like a credit card backed by your home. Instead of receiving one lump sum, you’ll be able to access a revolving line of credit that you can draw from as needed.

If you’re still deciding where in Salt Lake City you’d like to move, a HELOC gives you flexibility while you continue your home search.

While HELOCs usually have lower upfront costs than bridge loans, their interest rates fluctuate, so your monthly payments can change over time.

Cash-out refinance

A cash-out refinance resets your mortgage into a larger loan so you can take out the difference in cash.

This is a great option when borrowing rates are low, but it might not be worth it for homeowners who’ve already locked in a low rate years ago and don’t want to trade it for a more expensive mortgage.

80-10-10 (piggyback) loan

A piggyback loan combines a first mortgage and a second mortgage so you can buy your next home with just 10% down.

Buyers often use this strategy to avoid private mortgage insurance (PMI), but it can also mean handling multiple loan payments until your existing home closes.

Home sale contingency

You can also make an offer that has a home sale contingency. While this reduces risk (since you won’t be purchasing a new home until your existing one sells), many sellers find these offers to be weaker, so you might miss out on a home you love.

Solutions like HomeLight’s Buy Before You Sell bypass this issue by letting you remove a home sale contingency without selling your house first.

In a recent HomeLight Lender Insights survey, 41% of loan officers nationwide reported an increase in home purchases falling through because of contingency clauses.

Key takeaways for Salt Lake City homeowners

The temporary equity and flexibility of a bridge loan can make a big difference when you’re competing for limited housing inventory in a place like Wasatch Front or trying to transition your family into a bigger home without uprooting them twice.

Even though a bridge loan might be useful, you can still consider other options. A Buy Before You Sell program can unlock equity, strengthen your offer, and reduce the stress of moving several times.

If your goal is simply to unlock equity before selling, both options might work for you. It just depends on what you’d prefer the process to look like.

When might a bridge loan be a better fit?

You prefer a more traditional option
Your lender already offers bridge financing
You’re able to satisfy the stricter underwriting requirements

When might a Buy Before You Sell program be a better fit?

You want support for both financing and selling
You prefer a more certain moving process before listing
You’re trying to avoid managing two transactions at once
You need a more flexible way to find your next home

If you want to explore HomeLight’s Buy Before You Sell program in Salt Lake City, connect with an expert to see if your home qualifies and to get an idea of how much equity you might be able to access.

The most important part is making an informed decision by comparing the costs, timelines, and qualification requirements of each option to see what fits your goals best.

Editor’s note: As a friendly reminder, this post is intended for educational purposes, not financial advice. If you need assistance navigating a bridge loan in Salt Lake City, HomeLight encourages you to reach out to your own advisor.

Header Image Source: (Brent Pace/Unsplash)

At HomeLight, our vision is a world where every real estate transaction is simple, certain, and satisfying. Therefore, we promote strict editorial integrity in each of our posts.

Chloe Chahrouri

Associate Editor

Chloe Chahrouri is an associate editor for HomeLight. She holds a bachelor’s degree in creative writing, with a minor in professional and technical writing, from San José State University. She most recently worked as a copy editor on Reed Magazine's Issue 158 and won first place in fiction from Leaf by Leaf Magazine. When she’s not writing, she’s usually trying a new craft or experimenting with a recipe.