Home Loans
All Loan ProgramsFirst Time BuyersConventional LoansFHA LoansVA LoansJumbo LoansDSCR Investor LoansBank Statement LoansBridge LoansBuy or Refinance
Mortgage Pre-ApprovalFast-Close MortgagesMortgage Rates and FeesBuy Before You SellMortgage ProcessBridge Loans in Arizona: Buy Your Next Home Before You Sell
A bridge loan is short term financing that lets you use the equity in your current home to buy your next one before the current home sells. When the old home sells, the proceeds pay the bridge loan off. Pillar Mortgage Group, a Scottsdale broker, offers a residential bridge loan for Arizona homeowners and structures it around your sale.
By Blake Hermann, Director of Lending, NMLS 2271358
Reviewed October 30, 2026. Not a commitment to lend.
Bridge loans at a glance (checked October 30, 2026)
- What it is: a short term loan against your current home's equity that is paid off when that home sells.
- Who offers it here: Pillar Mortgage Group offers a residential bridge loan. Rates, fees and term depend on your file and the lender.
- Fannie Mae rule: a bridge loan is an acceptable source of funds if it is not cross collateralized against the new home.
- Two payments: until your current home is under an executed contract with financing contingencies cleared, lenders qualify you with both housing payments.
- New on November 1, 2026: Fannie Mae counts rent on a home you keep from market rent, and lease agreements are not permitted for a departing residence.
- Where: Arizona first. Outside Arizona, tell us your state and we will tell you whether we can close it or connect you with a licensed partner.
Sources: Fannie Mae B3-4.3-14, B3-6-06, B3-6-05, B3-3.8-05. Full list in the Sources section below.
What is a bridge loan?
A bridge loan is short term financing secured by the home you already own. It turns part of your equity into cash for the down payment and closing costs on your next home, so you can buy before you sell. When your current home sells, the bridge loan is paid off from the proceeds.
A swing loan
Fannie Mae files its rule under "Bridge/Swing Loans," so you will see both names. They mean the same thing: a temporary loan that bridges the gap between buying and selling.
Temporary financing
Federal Regulation Z treats a bridge loan of 12 months or less, used to buy a new home while you sell your current one, as temporary financing exempt from the ability to repay rules in 12 CFR 1026.43(c) through (f). That is a legal definition, not a promise of any loan term.
Paid off at the sale
A bridge loan is built around one event: the sale of your current home. That is what separates it from a long term home equity product, and why your sale plan matters as much as your credit.
How a bridge loan works in Arizona
Five steps from the equity in your current home to the keys to your next one.
- Review equity and income.The lender looks at what your home is worth, what you owe, and whether you can carry both homes and the bridge payment.
- Close the bridge loan.The bridge loan funds against your current home, giving you cash toward the down payment and closing costs.
- Buy your next home.Write your offer and close on the new home with your new mortgage, then move in.
- List and sell.Sell your current home after you move, so it shows empty and clean and you are not juggling two moves.
- Pay it off at closing.At the sale closing, proceeds pay off your old mortgage and the bridge loan. You are down to one payment.
The Fannie Mae rule to know: a bridge loan is an acceptable source of funds as long as it is not cross collateralized against the new property and the lender documents that you can carry the new home, the current home and the bridge loan. Fannie Mae does not set a maximum term for bridge loans. Source: Fannie Mae Selling Guide B3-4.3-14.
Where the money comes from: your equity
Equity is what your home is worth minus what you owe on it. The numbers below are hypothetical and only show the arithmetic. They are not a quote, an offer or an estimate of what you can borrow.
Home value
$600,000
Hypothetical
Mortgage balance
$250,000
Hypothetical
Equity
$350,000
Hypothetical
How much of your equity a lender will let you use, and at what cost, depends on your file and the lender. We quote your actual terms in writing before you commit.
Comparing every way to buy before you sell?
A bridge loan is one of five paths. See how it stacks up against qualifying with both payments, a home equity line, buy before you sell programs and a contingent offer.
Who a bridge loan fits, and who it does not
A bridge loan is a tool for a specific situation. Here is how we think about it with clients.
Strong equity, clear sale plan
- Moving up to a bigger home and want to move once
- Downsizing and want the new place ready first
- Relocating within Arizona on a set timeline
- Your current home is in good shape and priced to sell
- You want an offer that does not depend on selling first
Thin equity or an uncertain sale
- Little equity after selling costs
- A home that may take longer to sell than usual
- Income that is tight with two payments for a while
- No plan if the sale takes longer than expected
- In that case, a sell first plan may fit better
Get your bridge loan plan
Tell us about your current home and your timeline. Blake will look at your equity and both payments and tell you plainly whether a bridge loan fits, and what the terms would be for your file.
- Equity and payment review on your current and next home
- Your actual terms in writing, not a generic range
- A plan for the sale so the bridge loan has a clean exit
Outside Arizona? Tell us your state and we will tell you whether we can close it or connect you with a licensed partner.
Get My Bridge Loan Plan
No commitment · Under 2 minutes
Got it.
Blake will reach out shortly.
How lenders qualify you with two house payments
Answer first: if your current home has not sold, Fannie Mae requires the lender to qualify you with both the current and the new housing payment. That is the part of a bridge loan most people underestimate.
Both payments count
When your current home is pending sale but will not close before the new loan, Fannie Mae says the current and the proposed housing payment must both be used to qualify you.
When the old payment drops
The lender can leave the current payment out once it has the executed sales contract on your current home and confirmation that any financing contingencies have been cleared.
The bridge payment counts too
A bridge loan used to close on a new principal residence before the current one sells counts as a recurring monthly debt, unless there is a fully executed sales contract and the financing contingencies are cleared.
Keeping your current home as a rental: the November 1, 2026 change
For Fannie Mae loans with applications dated November 1, 2026 or later, rent from a departing residence is based on market rent, not a lease. If you are weighing a bridge loan against keeping the old home, this changes the math.
Market rent, no lease
Rent is supported by a full appraisal with market rents, a rent schedule, or a market analysis with at least three comparable rentals. Fannie Mae states that lease agreements are not permitted for any departing residence.
75% of rent minus the payment
The lender takes 75% of the monthly gross rent and subtracts the home's full payment. A positive result only offsets that payment. A negative result is added to your monthly debts.
Reserves for new landlords
If you have less than 12 months of property management experience, Fannie Mae requires six months of reserves for the home you are converting to a rental, on top of other reserve rules.
These are Fannie Mae rules. Other agencies and loan types have their own, so ask which rules apply to your loan.
Questions to ask any bridge lender
Bridge loan terms vary by lender and by file, so we do not publish a one size fits all rate or fee. Get answers to these in writing, from us or anyone else, before you commit.
- What is the term, and can it be extended? What does an extension cost?
- What are all the fees, in dollars, at closing and at payoff?
- How is my equity measured, and from what value?
- Are payments due monthly, or is interest paid at the sale?
- Is there a prepayment penalty?
- What happens if my home has not sold when the loan comes due?
Bridge loan vs HELOC vs the rest
A bridge loan is built to be paid off at the sale. The CFPB describes a HELOC as "a line of credit, like a credit card," except you borrow against the equity of your home (CFPB). Under Fannie Mae rules, a HELOC with a required monthly payment counts in your debt to income ratio, and one with no required payment does not (B3-6-05).
Buy before you sell programs from real estate companies and home sale contingent offers are the other common paths. Pillar Mortgage Group offers the bridge loan; we explain the rest so you can compare.
Compare all five ways to buy before you sell · Full HELOC vs bridge loan comparison
What the Phoenix market means for buying first
In September 2026 the Phoenix metro had 18,437 active listings and a median of 62 days on market, according to Realtor.com data published by the St. Louis Fed. More homes for sale means more choice when you buy, and more competition when you sell, so a realistic list price is part of any bridge loan plan.
Realtor.com data for the Phoenix-Mesa-Scottsdale metro (CBSA), published by the Federal Reserve Bank of St. Louis (FRED), checked October 30, 2026. Days on market is the median age of active listings, not time to close. Same provider and same month in both years.
How Pillar Mortgage Group helps
We offer a residential bridge loan for Arizona homeowners buying before they sell, and we place your new purchase loan as a broker with access to multiple wholesale lenders. One team looks at the bridge, the new mortgage and your sale timeline together, so the pieces fit.
- Bridge loan and new mortgage planned together
- Your actual terms quoted in writing for your file
- One point of contact from first call to payoff
- Office line (480) 660-4476, Monday to Friday 9 to 5 and Saturday 10 to 2
Looking for an investor bridge loan?
This page covers the residential bridge loan for homeowners buying their next home. If you are buying, flipping or refinancing investment property, start with our loan programs page and our DSCR loans page, then talk to Blake about the property and the plan.
Outside Arizona? Tell us your state and we will tell you whether we can close it or connect you with a licensed partner.
Your loan officer
Blake Hermann
Director of Lending, Pillar Mortgage Group · NMLS 2271358
Blake leads every bridge loan file personally. Born and raised in Arizona, he helps homeowners, investors and self employed borrowers finance their next move with straight answers and updates at every step.
About Blake · Office (480) 660-4476 · Book a call
Related guides
Supporting reads on costs, alternatives and timing.
Bridge loan FAQ
Straight answers to the bridge loan questions Arizona homeowners ask us most. Still have a question? Talk to a real person.
Book a free callWhat is a bridge loan, in simple words?
Does Pillar Mortgage Group offer bridge loans?
How does a bridge loan work in Arizona?
What does a bridge loan cost, and how long does it last?
Do lenders count both house payments when I use a bridge loan?
Can the bridge loan be secured by the new home?
Can I make an offer without a home sale contingency if I use a bridge loan?
What happens if my home does not sell before the bridge loan comes due?
Is a bridge loan better than a HELOC?
Can I keep my current home as a rental instead of selling it?
Who is a bridge loan a good fit for?
Do you offer investor or fix and flip bridge loans?
Do you close bridge loans outside Arizona?
Sources and review dates
All sources accessed and checked October 30, 2026. Market figures are Realtor.com data for the Phoenix-Mesa-Scottsdale metro (CBSA) published on FRED, comparing September 2025 with September 2026 from the same provider. Pillar Mortgage Group facts (office line, hours, average close, licensing) come from Pillar Mortgage Group.
- Fannie Mae Selling Guide B3-4.3-14, Bridge/Swing Loans: https://selling-guide.fanniemae.com/sel/b3-4.3-14/bridgeswing-loans
- Fannie Mae Selling Guide B3-6-06, Qualifying Impact of Other Real Estate Owned: https://selling-guide.fanniemae.com/sel/b3-6-06/qualifying-impact-other-real-estate-owned
- Fannie Mae Selling Guide B3-6-05, Monthly Debt Obligations: https://guide-selling.fanniemae.com/sel/b3-6-05/monthly-debt-obligations
- Fannie Mae Selling Guide B3-3.8-05, Rental Income from Non-Subject Property: Departing Residence (topic dated September 2, 2026): https://selling-guide.fanniemae.com/sel/b3-3.8-05/rental-income-non-subject-property-departing-residence
- Fannie Mae Announcement SEL-2026-08, Selling Guide Updates (issued September 2, 2026; required for applications dated on and after November 1, 2026): https://singlefamily.fanniemae.com/media/document/pdf/announcement-sel-2026-08-selling-guide-updates
- 12 CFR 1026.43(a)(3)(ii), Regulation Z, temporary or bridge loan exemption (eCFR, up to date as of October 22, 2026): https://www.ecfr.gov/current/title-12/chapter-X/part-1026/subpart-E/section-1026.43
- CFPB, What is the difference between a home equity loan and a home equity line of credit (last reviewed August 28, 2026): https://www.consumerfinance.gov/ask-cfpb/what-is-the-difference-between-a-home-equity-loan-and-a-home-equity-line-of-credit-en-247/
- Realtor.com, Housing Inventory: Active Listing Count in Phoenix-Mesa-Scottsdale, AZ (CBSA), via FRED, Federal Reserve Bank of St. Louis: https://fred.stlouisfed.org/series/ACTLISCOU38060
- Realtor.com, Housing Inventory: Median Days on Market in Phoenix-Mesa-Scottsdale, AZ (CBSA), via FRED: https://fred.stlouisfed.org/series/MEDDAYONMAR38060
- Realtor.com, Housing Inventory: Median Listing Price in Phoenix-Mesa-Scottsdale, AZ (CBSA), via FRED: https://fred.stlouisfed.org/series/MEDLISPRI38060
Buy first. Sell second.
Tell us about your current home and where you are headed. Blake will review your equity and both payments and lay out a bridge loan plan with your actual terms.
Outside Arizona? Tell us your state and we will tell you whether we can close it or connect you with a licensed partner.
Get My Bridge Loan Plan
No commitment · Under 2 minutes
Got it.
Blake will reach out shortly.
Pillar Mortgage Group, LLC is an Equal Housing Lender, doing business in accordance with the Fair Housing Act and Equal Credit Opportunity Act. Not a commitment to lend.
Company NMLS# 2700076 | Arizona License MB-2009671 | View NMLS Consumer Access