What is a Bridge Loan?
A bridge loan is a short-term financing solution that helps homeowners "bridge" the gap between buying a new home and selling their current one. These loans are designed to provide temporary funding when you need to make a purchase before your existing assets become available.
Traditional bridge loans typically finance up to 80% of your combined home values (current + new), requiring you to come up with the remaining 20% plus fees. Most bridge loans require monthly payments and must be repaid within 12 months.
Jib's Modern Alternative: Short Home Loans
While traditional bridge loans serve a valuable purpose, Jib has reimagined this financing tool for today's homeowners through our platform that connects you with licensed lenders:
- ✓100% financing available
- ✓No payments required until your home sells*
- ✓Repay when you sell your current home
- ✓Simple online application
- ✓Fast approvals
How Bridge Loans Work
Bridge loans enable homeowners to access their current home's equity before selling. This creates flexibility in timing and strengthens your position as a buyer. Here's how the process typically works:
1. Loan Approval
The lender evaluates both properties - your current home and the one you want to buy. They assess your credit, income, and the equity in your current home. Traditional lenders typically require:
- •Minimum credit score of 680+
- •Significant equity in current home (usually 20%+)
- •Ability to carry multiple loans
- •Debt-to-income ratio under 43%
2. Funding Structure
Bridge loans can be structured in two main ways:
One Loan
A single loan to pay off your current mortgage and provide a down payment for your new home.
Two Loans
A second mortgage on your current home to provide the down payment for your new home.
3. Repayment
Traditional bridge loans require monthly payments and must be repaid when:
- •Your current home sells
- •The loan term ends (up to 12 months)
- •You refinance into a permanent mortgage
How Jib Short Home Loans Are Different
We've simplified the bridge loan process to make it more accessible and less stressful:
Traditional Bridge Loans
- •Up to 80% financing
- •Monthly payments required
- •Complex approval process
- •Multiple loans to manage
Jib Short Home Loans
- •100% financing available
- •No payments required until your home sells*
- •Simple online application
- •Single loan solution
Common Bridge Loan Use Cases
1. Hot Market Opportunities
When you find your dream home in a competitive market, waiting to sell your current home first could mean missing out. A bridge loan lets you make a strong, non-contingent offer immediately.
"We found our perfect home but knew it would sell fast. Jib helped us make a strong offer without a home sale contingency, and we got it!"
2. Maximizing Sale Price
Selling a vacant, properly staged home often yields a higher price. Bridge financing lets you move out first, then prepare your home for sale without rushing.
"By moving out first, we could properly stage our home and got $50,000 over asking price."
3. New Construction Timing
When building a new home, construction timelines can be unpredictable. Bridge financing provides flexibility to manage the transition without rushing to sell.
"Construction took 3 months longer than expected. Our bridge loan gave us the flexibility we needed."
4. Relocation & Job Changes
When relocating for work, bridge financing helps you move on your timeline without being forced to sell quickly in your departure city.
"We needed to move for a new job but wanted time to sell our house for the best price possible."
Bridge Loan Costs & Requirements
Bridge loans typically come with higher costs than traditional mortgages due to their short-term nature and increased risk for lenders. Here's what you need to know:
Traditional Bridge Loan Costs
- •Interest rates: Upto 15%+
- •Origination fees: 1-5% of loan amount
- •Administration fees: $1,500-3,000
- •Appraisal fees: $400-600 per property
Jib Short Home Loan Costs
- •% origination fee
- •% discount points
- •% interest rate
- •No payments required until your home sells*
- •No hidden fees or costs
Qualification Requirements
Traditional Bridge Loans
- •680+ credit score
- •20%+ equity required
- •Debt-to-income ratio under 43%
- •Extensive documentation
Jib Short Home Loans
- •640+ credit score
- •Use the equity in your current home and the new home
- •No DTI requirements
- •Quick online process
Compare Your Options
vs Traditional Bridge Loans
See how our Short Home Loans compare to traditional bridge financing
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vs Traditional Mortgage
How our loans stack up against conventional mortgages
vs Knock
Compare with Knock's Home Swap program
vs Homelight
See how we compare to Homelight's Cash Offer
vs Orchard
How we stack up against Orchard's Move First