![\"homelight](\"https:\/\/www.homelight.com\/blog\/wp-content\/themes\/ccprototypev5\/images\/logo-small-cta.png\"){kind=logo}
\n <\/div>\n \n Yes, You Can Buy Before You Sell. Why Move Twice?<\/h3>\n
Through our Buy Before You Sell program, HomeLight can help you unlock a portion of your equity upfront to put toward your next home. You can then make a strong offer on your next home with no home sale contingency<\/strong>.<\/p>\n \n A bridge loan is a short-term loan that helps you buy a new home before your current home sells. It lets you borrow against the equity you’ve built in your existing home, giving you access to funds that can be used for a down payment, closing costs, or other expenses related to your next purchase.<\/p>\n Because bridge loans are designed to provide quick access to cash, they typically have higher costs than a traditional mortgage. Still, many Rhode Island buyers find the added flexibility worthwhile because it can help them avoid a rushed home sale or the need for temporary housing.<\/p>\n Bridge loans are also sometimes called:<\/p>\n A common situation where a bridge loan can help is when you find a new home you want to buy before your current home has sold. In this case, you can use the equity you’ve built in your existing home to help cover the down payment<\/a> and closing costs<\/a> on your next purchase.<\/p>\n In many cases, the lender providing your new mortgage may also offer a bridge loan. They often require your current home to be actively listed for sale and typically offer bridge loans with terms ranging from six months to one year.<\/p>\n As part of the approval process, the lender will review your debt-to-income ratio<\/a>. Depending on your situation, they may factor in your current mortgage payment, your new mortgage payment, and any payments associated with the bridge loan.<\/p>\n If your current home is already under contract and the buyer has secured final loan approval, the lender may only count your new mortgage payment. This helps reduce the risk of taking on more debt than you can comfortably manage if your current home takes longer than expected to close. In Rhode Island, a bridge loan can offer several advantages when you’re buying and selling at the same time:<\/p>\n While bridge loans can provide flexibility, they aren’t the right fit for every buyer:<\/p>\n A bridge loan may make sense if you’re trying to coordinate the sale of one home with the purchase of another.<\/p>\n Some common situations include:<\/p>\n Explore the ins and outs of bridge loans in Rhode Island: benefits, drawbacks, costs, providers, and modern alternatives. Learn how you can \u2018Buy Before You Sell.\u2019<\/p>\n","protected":false},"author":367,"featured_media":70519,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","cybocfi_hide_featured_image":"","footnotes":""},"categories":[823,771,629],"tags":[767],"class_list":["post-70518","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bridge-loans","category-buying-a-house-while-selling","category-home-financing","tag-what-is-a-bridge-loan"],"acf":[],"yoast_head":"\nWhat is a bridge loan, in simple words?<\/h2>\n
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How does a bridge loan work in Rhode Island?<\/h2>\n
What are the benefits of a bridge loan in Rhode Island?<\/h2>\n
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What are the drawbacks of a bridge loan?<\/h2>\n
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When is a bridge loan a good solution?<\/h2>\n
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