What is a bridge loan and how does it work in Miami?

A bridge loan is a short-term mortgage, typically 6 to 12 months, that lets you tap the equity in your current home to fund the purchase of a new one before you sell. In Miami, where sellers routinely reject offers with sale contingencies in competitive neighborhoods like Coral Gables, Brickell, and Doral, a bridge loan lets you make a clean offer. The lender holds a lien on your existing property and the bridge funds go toward the down payment or full purchase of the next home. When you close the sale of your current home, the proceeds pay off the bridge.

What does a bridge loan cost?

Bridge loans are more expensive than conventional mortgages. Rates typically run 1.5 to 3 percentage points above the current 30-year fixed rate, putting them in the 8% to 10% range depending on loan size and borrower profile in 2026. Most lenders also charge 1 to 2 origination points upfront. The total cost for a 6-month bridge on a $300,000 loan at 9% plus 1.5 points comes to roughly $18,000 in combined interest and fees. That sounds steep but compared to losing a house to another buyer or renting while you look, many Miami homeowners find the math works in their favor.

How much can I borrow with a bridge loan?

Most bridge lenders cap the combined loan-to-value ratio at 80% across both properties. Combined LTV means they add your existing mortgage balance, the bridge loan amount, and your new mortgage, then divide by the combined value of both homes. If your current home is worth $600,000 with a $200,000 mortgage, and your new home is $700,000, a lender calculating 80% combined LTV would allow a bridge loan up to roughly $240,000. The exact formula varies by lender. Some use only the equity in the departing property.

Do I need to qualify for both mortgages at the same time?

Usually yes, at least initially. Most bridge lenders require you to demonstrate the ability to carry both the bridge payment and your new purchase mortgage simultaneously, even though that situation is temporary. This is a stricter qualifying standard than most buyers expect. Debt-to-income ratio requirements vary by lender, but you should have strong income relative to your combined obligations. Some lenders are more flexible and only qualify you on the new mortgage if you can document a signed contract on the departing property.

Is a bridge loan better than a HELOC for buying before selling?

They solve different problems. A HELOC on your current home works well if you want to pull out equity for a down payment and you have time to plan, since HELOC applications can take 3 to 6 weeks to close. But most banks and credit unions freeze or cancel HELOCs when they detect a pending sale of the collateral property, which creates real risk if you apply for a HELOC and then list your home. Bridge loans are designed specifically for the transition period and are not subject to the same cancellation risk. The trade-off is that bridge loans cost more than a HELOC and have a shorter repayment window.

How long does it take to close a bridge loan in Miami?

Bridge loans close faster than conventional mortgages. Most close in 10 to 21 business days depending on the lender and how quickly you supply documentation. Some private bridge lenders can close in as few as 5 to 7 days for the right borrower. Speed matters in Miami where multiple-offer situations are common in Kendall, South Miami, and Key Biscayne. Institutional bridge lenders from banks and mortgage companies tend to take 15 to 21 days; private and hard-money lenders are faster but charge more.

What are the alternatives to a bridge loan for Miami buyers?

Several alternatives exist depending on your situation. A contingent offer is the simplest (you offer on the new home contingent on selling yours) but sellers in Miami often reject these outright. A cash-out refinance on your current home gives you equity without the high bridge rate, but takes longer and you carry that debt permanently. An 80/10/10 piggyback on the new purchase avoids a sale contingency if you can cover the down payment from savings. Gift funds from family can serve the same purpose. Finally, a short-term lease-back from your buyer after selling gives you time to close the new purchase without needing bridge financing at all.

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Bridge Loans Miami: How to Buy Your Next Home Before Selling Your Current One

Published: June 1, 2026 · Updated: June 2026 · Category: Alternative Financing · NMLS #2583712

Miami sellers don't wait. According to the Miami Association of REALTORS (Q1 2026), Miami-Dade single-family homes have been selling in under 30 days on average in many price ranges, and contingent offers get passed over constantly. If you own a home and want to buy another without losing the house you want to a cash buyer or cleaner offer, a bridge loan is worth understanding.

In Miami's market, a contingent sale offer is often the same as no offer. Bridge financing exists to fix exactly that problem.

The short version: A bridge loan is a 6 to 12 month mortgage secured by your current home's equity. It funds your next purchase before you sell. You carry two properties temporarily, then pay off the bridge when your old home closes. It costs more than a conventional loan but less than losing the house.

What a Bridge Loan Actually Does

The mechanics are straightforward. You own a home with equity. You find a home you want to buy. You don't want to sell first and rent while searching. A bridge loan lets your lender advance you money against that equity now, so you can close on the new purchase without a sale contingency attached.

The loan term is typically 6 to 12 months. No monthly principal payments are usually required; interest accrues and gets paid at payoff. When you sell the departing property, the proceeds retire the bridge, and you're left with just your new mortgage.

The lender takes a first or second lien on your existing home. Some bridge lenders require a signed listing agreement on the property before they'll close the loan. Others are fine with a verbal plan. Ask upfront.

Combined LTV: The Number That Controls Everything

Most bridge lenders use a combined loan-to-value cap of 80%. That number includes everything: your existing mortgage, the bridge amount, and sometimes your new mortgage. If the math doesn't work to 80% combined LTV with the equity you have, the loan doesn't happen.

Here's a real example. Your current home in Coral Gables is worth $750,000. You owe $280,000. Your equity is $470,000. Your target combined LTV is 80% of $750,000, which is $600,000. Subtract your existing mortgage ($280,000) and you've got $320,000 in potential bridge proceeds. That's a meaningful down payment on almost any property in Miami.

Equity is the engine. Without 30-40% equity in your departing home, most bridge lenders can't make the math work at 80% combined LTV.

What Bridge Loans Cost in Miami

Bridge loans are not cheap. They're priced as short-term, higher-risk products because the lender is betting you'll sell your home quickly. In 2026, bridge rates generally run 1.5 to 3 percentage points above the conventional 30-year fixed, which puts most bridge loans in the 8% to 10% range.

On top of the rate, expect origination fees of 1 to 2 points. Sometimes you'll also pay an extension fee if the property doesn't sell within the initial term and you need to roll the loan for another 3 to 6 months. Budget for that possibility.

Scenario	Bridge Loan ($300K)	Bridge Loan ($500K)
Rate (est. 2026)	9.00%	9.00%
Term	6 months	6 months
Interest cost (6 mo.)	~$13,500	~$22,500
Origination (1.5 pts)	$4,500	$7,500
Total bridge cost	~$18,000	~$30,000

Those numbers sound large. But compare them to the alternative. If you're in a Pinecrest or South Miami home that's appreciated $200,000 since you bought it, spending $18,000 to not give up your equity position or lose a new property you genuinely want is a rational trade. The math is buyer-specific. Run it both ways.

Who Qualifies for a Bridge Loan

Bridge loan underwriting is more flexible than conventional but still has real requirements. Here's what most lenders want to see:

Significant equity. You need at least 30 to 40% equity in the departing property to make combined LTV math work at 80%.
Strong credit. Most bridge lenders want 640 or higher. Some will go to 620 for strong assets, but don't count on it.
Income to carry both payments. Your DTI including both the bridge payment and the new mortgage payment needs to qualify. This is where many buyers get surprised.
Saleable property. The lender is counting on you selling your existing home. If it's an unusual property (complex flood situation, very high price point with thin buyers) some lenders get cautious.
Exit plan. The lender wants to see the path to payoff. A listing agreement, a sale contract, or at minimum a clear timeline for listing the departing property.

The Miami Context: Why This Matters Here

The National Association of REALTORS reported in its 2025 Profile of Home Buyers and Sellers that contingency-free buyers close faster and win more competitive offers in tight markets. Miami-Dade's inventory situation makes this especially true.

Coral Gables sellers get multiple offers, and they screen for strength. A buyer who can't close without selling first is a risk they don't have to take. In neighborhoods like Coconut Grove, Pinecrest, and the Roads, clean offers win. Bridge financing is one of the few tools that gives an existing homeowner the same positioning as a buyer without a property to sell.

There's also a relocation angle. Miami sees significant corporate relocation from New York, Chicago, and California. Someone being transferred here doesn't have 90 days to sell their Chicago condo first. Bridge financing bridges that geographic gap as much as the timing one.

Corporate relocations to Miami have accelerated sharply since 2022, per the Miami-Dade Beacon Council, creating steady demand for bridge financing among buyers who own elsewhere.

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Alternatives Worth Comparing First

Bridge loans are not always the right tool. Depending on your timeline, credit profile, and how much equity you have, one of these alternatives might work better:

Cash-Out Refinance Before Listing

If you're not in a rush, a cash-out refi on your current home pulls equity at conventional rates (much cheaper than bridge). You get the cash, use it for the down payment, then sell when ready. The catch: you now carry a bigger mortgage on the departing property while it sells. If the sale takes longer than expected, that's real carrying cost. And if rates are materially lower than your current mortgage, you'd be refinancing into a worse rate just to access equity.

HELOC Before You List

A home equity line on your current property is the cheapest form of equity access available, typically prime plus a small margin. But here's the problem: lenders routinely freeze or reduce HELOCs once they see the property is for sale or under contract. Apply for the HELOC before you list the home. Use it for the down payment. Then sell. That sequence can work, but timing matters and the window is narrow.

Lease-Back Agreement

Negotiate a post-closing occupancy agreement with your buyer. Sell your current home, close, but stay in it as a tenant for 30 to 60 days after closing. Use the sale proceeds to close on your new purchase during that window. This is free compared to a bridge loan, but it requires a buyer willing to accept a delayed occupancy and some added complexity on the contract. In a normal market, buyers will often agree. In a very tight market where buyers are competing, they may not.

Contingent Offer with Short Timeline

Not always a losing strategy. If you're targeting a property that's been sitting for a while, a contingent offer with a 45-day sale contingency might get accepted. Sellers of well-priced, in-demand homes won't take it. But if you're looking in price ranges or neighborhoods with more supply, contingent offers close every day. Know your target market before ruling this out.

Things Bridge Loans Can't Fix

A bridge loan solves the timing problem. It doesn't solve a pricing problem. If your current home is worth less than you think, the combined LTV math won't work. If your property is hard to sell because of condition, location, or price, the lender will either decline or charge a premium that makes the bridge unworkable. Bridge lenders are not patient partners in a slow sale.

They also don't help if your income is too tight to carry both payments. Running the DTI numbers before applying saves time. If you can't qualify with both mortgage payments factored in, you need to either wait until you have a contract on the current home (some lenders will exclude that payment once you're under contract), or take a different approach entirely.

How to Find a Bridge Lender in Miami

Not every mortgage company offers bridge loans. Most conventional lenders stick to Fannie/Freddie products. Bridge loans fall into Non-QM territory, and you need a lender with that capability. Private lenders, Non-QM specialists, and community banks with portfolio lending programs are your options.

The Non-QM and portfolio loan space in South Florida is active. If you've been told bridge loans aren't available, you've been talking to the wrong lender. They exist, they close regularly in Miami, and the terms are negotiable to a degree on origination fees and extension options.

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Frequently Asked Questions

Sources

Miami Association of REALTORS, South Florida Market Statistics, Q1 2026
National Association of REALTORS, Profile of Home Buyers and Sellers, 2025
Miami-Dade Beacon Council, Corporate Relocations Report, 2025
Consumer Financial Protection Bureau, Home Equity Products Guide, 2025
Federal Reserve, Senior Loan Officer Opinion Survey on Bank Lending Practices, Q1 2026