A traditional bridge loan can help you move into your next home before your current one sells, but it is one of the most expensive ways to do so. Interest often runs above 10%, points and fees can add up to $10,000, and you carry two mortgage payments until the old home closes. There are cheaper bridge loan alternatives that solve the same problem, and the strongest one does not function like a loan at all. Here is how each option works and what it actually costs.
Why a Traditional Bridge Loan Costs So Much
A bridge loan taps the equity in your current home so you can buy the next one before selling. It works, but the price is steep for a few reasons:
- Interest often runs above 10%, well over a standard mortgage rate; you can compare against today’s rates to see the gap
- Points and origination fees can add $10,000 or more
- You make payments on both homes until the old one sells
- The payoff window is short, usually six to twelve months
- Many programs require a 700 or higher credit score
Underneath all of that, a bridge loan is really solving two problems at once: qualifying for a new mortgage while you still carry the old payment, and freeing the equity locked in your current home for a down payment. Once you separate those two problems, cheaper options open up.
For a neutral overview of the homebuying process, the CFPB’s homebuying resources are a good starting point.
EasyPath: A Bridge Alternative That Isn’t a Loan
EasyPath is JVM’s most popular way to buy before you sell, and it sidesteps the highest cost of a bridge loan by not being a loan at all. An investor signs a contract to buy your current home within 180 days for a single flat fee. That contract is the key: it lets your lender exclude your existing mortgage payment from your debt-to-income ratio, which is why buying before selling is hard to qualify for.
From there, you stay in control of the sale:
- You list and sell on the open market with your own agent
- If it sells within 180 days, you keep 100% of the proceeds
- If it does not sell in that window, the investor buys it at the guaranteed price, around 75% of appraised value, resells it, and you keep 90% of the net profit
So the guarantee is a floor, not a forced sale. The fee is a single flat amount, not a percentage of your home’s value, and it is paid when you go under contract on the new home, with no upfront cost. It is not a second mortgage, so your current loan stays in place until you sell. You generally need about 25% equity, and it works with conventional, jumbo, and VA financing on a primary residence.
EasyPath Plus a HELOC: Usually the Cheapest Path
EasyPath fixes qualifying. A home equity line of credit (HELOC) on your current home gives you the cash for the down payment. Paired, they are usually the lowest-cost, most flexible way to buy first, which is why we recommend the combination for most buyers.
A HELOC on its own does not solve the harder problem. It gives you access to your equity, but both your existing mortgage payment and the new HELOC payment still count in your debt-to-income ratio, so you can still get stuck qualifying for the new loan. Adding EasyPath removes the old payment from the equation, and the two together cover both the cash and the qualifying.
Other Ways to Buy Before You Sell
EasyPath is not the only alternative to an expensive bridge loan. Depending on your equity, timeline, and how much cash you already have, one of these may fit better:
- Cash-out refinance or HELOC alone. Both unlock equity for a down payment, but neither removes your current payment from your qualifying calculation, so they work best when carrying two payments is not the obstacle. A bridge loan for a down payment is another way to free that cash.
- Sell first with a rent-back. Often the lowest-cost route. You negotiate time to stay in the home after closing, up to 59 days with owner-occupied financing, which gives you room to find your next place.
- Rent out your current home. A signed lease and security deposit can offset the payment for qualifying, so you keep the property and still buy.
- A 0% bridge loan. For buyers who want a single product, this option charges no interest for a set period, with the investor buying the home if it does not sell within that period.
If you want the full step-by-step process, see our guide on how to buy before you sell.
Which Alternative Fits
The right choice comes down to which problem you are actually solving:
- If qualifying with two payments is the obstacle, EasyPath handles it
- If you also need the equity for a down payment, pair EasyPath with a HELOC
- If you already have the cash and just need time, a rent-back or selling first is usually cheapest
Every situation turns on your equity, your timeline, and how much you want to spend on the transition, so it is worth pricing two or three approaches side by side before you commit.
Frequently Asked Questions
What is the cheapest alternative to a bridge loan?
For most buyers, EasyPath paired with a HELOC. EasyPath removes your current mortgage payment from qualifying for a flat fee, and the HELOC provides down payment cash, which together cost far less than a traditional bridge loan’s rate and points.
Is EasyPath a loan?
No. EasyPath is a guaranteed purchase contract, not a loan. An investor agrees to buy your home within 180 days, allowing your lender to ignore your current mortgage payment when you qualify. You take on no second mortgage, and your existing loan stays in place until you sell.
How much equity do you need to buy before you sell?
Generally about 25% in your current home. Equity is what makes these options work, since it is the source of your down payment and the cushion the investor relies on. With less than 25%, other paths may fit better.
Can you use a HELOC instead of a bridge loan?
You can use a HELOC to pull cash for a down payment, but it does not remove your existing payment from your debt-to-income ratio. If qualifying with two payments is the problem, a HELOC alone will not fix it. Pairing it with EasyPath does.
What happens if your home doesn’t sell in time?
With EasyPath, the investor buys your home at the guaranteed price if it has not sold within 180 days, then resells it, and you keep 90% of the net profit. You are never forced into a fire sale, and you never carry the home indefinitely.
For more details on how EasyPath works, see our full buy before you sell FAQs.
Find the Cheapest Way to Buy First
A traditional bridge loan is rarely the least expensive way to buy before you sell. With EasyPath, a HELOC, a rent-back, or a combination, most buyers can make a strong non-contingent offer without paying bridge loan rates and points. The best fit depends on your equity and timeline, so it pays to compare a couple of approaches on real numbers.
Thinking about buying your next home before selling your current one? Reach out to JVM Lending to get pre-approved and price out your options.
