The Bridge Loan Blueprint | Conrad Mortgage

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The Bridge Loan Blueprint:

How to Buy Your Next Home Before Selling Your Current One

Real Denial Scenario

Imagine this: Jane and Tom own a home in Cleveland with $250,000 in equity. They’ve found their dream house but haven’t sold their current home yet. They approach multiple lenders, only to be told “you can’t carry two mortgages at once” or “we can’t count your home equity toward your down payment until it sells.” Their agent explains the challenges of a contingent sale- sellers are reluctant to accept offers with a home-to-sell contingency, the logistics of perfectly aligning two closings are hard enough without adding in movers and possible temporary housing, and if the sale buyer
falls through the purchase is in jeopardy.

This is exactly where a bridge loan can help.

Why This Happens

Lenders say no because most borrowers don’t have liquid funds to cover a down payment on the new home while still carrying the current mortgage. Conventional underwriting typically requires income verification and debt-to-income calculations for all
obligations. If the down payment comes from a home that hasn’t sold, the funds are considered “unavailable,” and lenders won’t approve the purchase.

Even when borrowers have substantial equity, the lender’s risk rules prevent them from allowing the purchase without some form of bridge financing. While a HELOC may be an option to pull cash out of the current home, it requires income to qualify for all 3 loans (Current 1 st mortgage, equity loan and new home mortgage).

The Actual Rules That Matter

At Conrad Mortgage, we use a no-payment bridge loan to solve this problem:

Current home CLTV: Maximum 75%. The equity available can only be used to fund the purchase of the new home.
Credit score: Minimum 680 required.
Reserves:
- 3 months of current mortgage if the bridge loan is under $500,000
- 6 months if the bridge loan is over $500,000
Payment structure: No monthly payments for 6 months; a balloon payment is due at month 6. No prepayment penalty exists. Neither the bridge loan nor current home payments are counted in debt when qualifying for the new home.
Documentation: Borrowers must complete a Statement of Intent to Sell for their departing residence.
Eligible properties: Single-family homes (SFR), Planned Unit Developments (PUD), and certain condos.

What Gets Reviewed

When underwriting a bridge loan, lenders will specifically look at:

Equity in the current home and CLTV calculations
Credit score (680 minimum)
Cash reserves on the current mortgage
Statement of Intent to Sell for the departing home
Closing Disclosure for the new home.
New home loan eligibility (income, appraisal, and LTV per loan program)
Property type to confirm eligibility (SFR, PUD, certain condos)

How to Get Started

If you’re a homeowner in Northeast Ohio ready to buy before selling, the first step is to review your current equity, reserves, and credit profile. From there, we can determine whether a no-payment bridge loan or a HELOC fits your situation.

We’ll walk through your numbers and timelines, so you understand exactly what is
required to make a move without waiting for a contingent sale.

Written by Gen Flieger
Loan Originator
Conrad Mortgage
NMLS # 2667206

03/17/2026

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