Understanding how short-term real estate loans can unlock big opportunities
In the world of real estate, timing doesn’t always line up perfectly. Maybe you’ve found your dream home—but your current home hasn’t sold yet. Or you need to act fast on a purchase before your permanent financing is in place. That’s where a true bridge loan comes in.
At Hopkins Financial Services, we specialize in helping clients navigate these in-between moments with smart, short-term financing solutions.
What Exactly Is a Bridge Loan?
A bridge loan is a short-term real estate loan designed to “bridge the gap” between an immediate need (like purchasing a new property) and a near-future event (like the sale of your current home or securing long-term financing).
These loans are short-term (typically 12 months or less), and are secured by real estate collateral. Most importantly, they come with a defined exit strategy—how and when the loan will be repaid.
The Most Common Scenario: Buying Before You Sell
Let’s say you’ve found the perfect next home but haven’t yet sold your current one. You’ve got good equity in the property you’re selling, but the timing just doesn’t line up. Traditional lenders usually can’t help in this situation—because they want the old home sold first.
Here’s how Hopkins Financial can help:
- We evaluate both properties—the one you’re buying and the one you’re selling.
- Assuming you have sufficient equity, we may be able to structure a bridge loan that uses both homes as collateral.
- This gives you the capital to close quickly on the new home—without needing to sell first.
Once your current home sells, you have a few options:
- Pay off the bridge loan in full, and you’re done.
- Pay it down enough to refinance the new home into a long-term mortgage.
- Use a take-out loan (traditional or otherwise) to replace the bridge loan entirely.
Why Use a Bridge Loan?
- Act fast in a competitive market
- Avoid contingent offers that might get ignored
- Keep control of your timeline, not the bank’s
- Stay in your current home while preparing the new one
How Hopkins Financial Does It Differently
Unlike big banks, we don’t rely on rigid guidelines or cookie-cutter solutions. We evaluate every deal on its own merits. Our loans are equity-based, not credit-score driven. And we’ve been funding creative, short-term solutions like this for over 40 years.
Whether you’re an experienced real estate investor or just need a smart solution to buy before you sell, we’re here to help bridge the gap.
Ready to Talk?
Give us a call at 208-HOP-KINS or visit www.hopkinsfinancial.com to explore whether a bridge loan is right for you.
