You found the right home in Brentwood, but your current one is not on the market yet. You want to move without juggling a sale contingency or risking a missed opportunity. A bridge loan can help you buy first and sell next with a clear, planned exit. In this guide, you will learn how bridge loans work in Brentwood and Williamson County, what they cost, the risks to weigh, and practical steps to decide if this path fits your move. Let’s dive in.
What a bridge loan is
A bridge loan is short-term financing that helps you purchase a new home before you sell your current one. It is commonly used to avoid a sale contingency and to strengthen your offer. Most bridge loans last 6 to 12 months and are secured by your current property. Principal is typically paid off when your existing home sells.
How bridge loans are structured
Common structures
- Stand-alone bridge loan that uses your current home as collateral and requires interest-only payments during the term.
- HELOC or home equity loan on your current home used for your down payment on the new purchase.
- Hybrid options that tie the bridge to both properties or place a second lien on the new home.
Underwriting basics
Lenders focus on the equity and marketability of your current home. Many allow combined loan-to-value ratios in the 80 to 90 percent range depending on your credit and product type. Expect to provide an appraisal or broker price opinion, proof of income and assets, and a contract on the new purchase if available.
Payments and term
Most bridge loans feature interest-only payments. Interest may be higher than a standard mortgage because the loan is short term. Terms usually run 6 to 12 months, with some lenders offering extensions when needed.
Costs and timelines to expect
Bridge financing is designed for speed and flexibility, which means higher costs than a conventional mortgage. Rates are typically a premium over market mortgage or prime rates. Origination fees often range from 1 to 3 percent of the loan amount, plus standard closing costs such as appraisal, title, and recording fees.
Plan for the carrying cost of two properties for a period of time. That can include your existing mortgage, bridge interest, insurance, taxes, utilities, and maintenance. Application-to-funding timelines often run 1 to 4 weeks depending on valuation and documentation. Build a realistic budget that anticipates a conservative sale timeline for your current home.
Exit strategies that work
The cleanest exit is the sale of your current home, which pays off the bridge at closing. Secondary options include a cash-out refinance or a HELOC if you decide to hold your current property longer. If the market slows or plans change, you should have a backup that covers payments beyond the original term or a path to refinance. Strong pricing, thoughtful preparation, and experienced representation can reduce the time to sale.
Risks and who it fits in Brentwood
Bridge loans carry risk because you are managing two properties at once. The main exposures are carrying costs, higher short-term interest and fees, market timing, and the fact that your existing home serves as collateral. If the market softens or your home needs improvements, the sale could take longer.
A good candidate in Brentwood or Williamson County typically has meaningful equity, a stable income, and enough reserves to cover dual payments for a period of time. You also benefit if your home is likely to sell quickly based on local demand, pricing, and condition. If you need a competitive, non-contingent offer to secure a unique property, a bridge can be a strategic tool.
Brentwood market factors
Brentwood and Williamson County include many higher-price segments and equity-rich owners. Inventory can be limited in certain pockets, which rewards buyers who can act quickly. Seasonality matters, with spring often bringing more activity and shorter marketing windows for well-prepared listings.
Sub-markets move at different speeds. Homes in the core move-up range often sell faster than custom estates at the top end. If your current home needs updates to compete, factor that work and timeline into the bridge term. Ask your agent for a conservative, comparables-based plan that takes the past 6 to 12 months of days on market into account for your neighborhood and price tier.
Alternatives to consider
- Sale contingency. Lower cost but less attractive to sellers in competitive segments.
- Delayed closing or rent-back. Negotiate time to stay after closing so you can buy without overlap.
- HELOC on your current home. Often faster and cheaper than a bridge, though rates can be variable.
- Cash-out refinance. Taps equity but may change your long-term mortgage rate and terms.
- Private or specialized lenders. Flexible, but usually higher cost.
Choose an alternative if your expected days on market are uncertain or if carrying costs would create strain. If you need speed and a stronger offer position, a bridge may still be the right call.
Step-by-step checklist
- Confirm equity. Order a preliminary valuation and compare to your current loan balance to estimate available equity and combined LTV.
- Gather lender quotes. Compare rates, fees, term length, interest structure, and any prepayment penalties.
- Validate your timeline. Use conservative days on market for your neighborhood and price tier to stress-test the plan.
- Build a cash buffer. Budget for two to three months beyond your expected sale date for all carrying costs.
- Prepare the property. Complete small repairs, consider staging, and finalize a pricing and launch plan aimed at a quick, clean sale.
- Align the team. Keep both your selling and buying agents fully informed and coordinate with your lender, title, and closing partners.
- Get professional advice. Consult your tax advisor on interest deductibility and an attorney on contract specifics if needed.
- Review the documents. Confirm lien position, payoff coordination, and all fee disclosures in writing before you sign.
Example: how the numbers can look
Consider a homeowner with a current Brentwood property valued at $800,000 and a $200,000 mortgage balance. They want to purchase a $1,000,000 home and need $200,000 for the down payment. A lender offers a bridge loan secured by the current home that provides $250,000 after fees, with a 9-month term and interest-only payments.
The plan is to list the current home immediately with a projected marketing period of about 45 days. If the sale closes within 90 days, the bridge is paid off at closing and the buyer continues with the new first mortgage. If the home takes 9 to 12 months to sell, the owner must be ready to cover both mortgage payments and bridge interest or refinance the bridge.
How we help you execute
In Brentwood’s higher-value segments, timing and presentation drive outcomes. We help you price to the market, prepare with discretion, and launch a listing that attracts qualified buyers quickly. We also coordinate calendars across your sale and purchase, share conservative timelines, and keep all parties aligned so your exit strategy is clear.
If a bridge loan supports your move, we will work alongside your chosen lender, manage the listing process, and position your purchase offer for success. For questions about tax or legal matters, we will connect you with trusted advisors and keep the process confidential from start to finish.
Ready to map your move-up plan with a private, timing-first strategy? Request a private consultation with the team at Stutts Miller Properties.
FAQs
What is a bridge loan for Brentwood homeowners?
- A bridge loan is short-term financing that lets you buy a new home before selling your current one, typically using your current home as collateral and paying it off at sale.
How long does bridge loan funding take in Williamson County?
- Many lenders fund within 1 to 4 weeks, depending on your valuation, documentation, and how quickly third parties complete appraisal or pricing opinions.
What are typical bridge loan costs compared to a HELOC?
- Bridge loans usually carry higher rates and 1 to 3 percent origination fees, while HELOCs can be cheaper but often have variable rates and different draw rules.
Who is a good candidate for a bridge loan in Brentwood?
- Owners with strong equity, stable income, cash reserves for dual payments, and homes likely to sell quickly in their sub-market are the best fit.
What if my luxury home could take longer to sell?
- Plan a longer timeline, build extra cash reserves, consider pre-list improvements, and discuss alternatives like rent-back or a HELOC before committing to a bridge.
Can I make a non-contingent offer with a bridge loan in Tennessee?
- Yes, many buyers use bridge financing to remove a sale contingency, but you should confirm funds availability and terms with your lender before writing the offer.
