Bridge Loans Explained: How Cornwall Homeowners Buy Before They Sell
Bridge loans let Cornwall homeowners buy before they sell—if both deals are firm. Learn how they work and what you need to qualify.
11/3/2025
If you already own a home and want to move, you may be wondering how to buy your next house before your current one sells. This is something many homeowners in Cornwall and the surrounding areas ask about, especially when the market is busy.
A bridge loan can help, but only if certain conditions are met. In fact, a bridge loan is only possible when both your purchase and your sale are firm. Without that, lenders will not approve one.
In this post, I’ll explain what a bridge loan is, how it works and what you need to qualify.
What Is a Bridge Loan?
A bridge loan is a short-term loan that helps you access the equity in your current home before the sale closes.
Think of it like a temporary “bridge” that connects your old home to your new one. It gives you the funds you need for your down payment and/or closing costs so you can close on your next home without waiting for your sale to close.
Once your current home closes and the money comes in, the bridge loan is paid off right away.
The Most Important Rule: Both Deals Must Be Firm
Many people think you can use a bridge loan just because your home is listed or you plan to sell. But that’s not how it works.
To get a bridge loan in Cornwall, both purchase and sale must be firm (firm means no conditions):
- An unconditional purchase agreement (for the home you are buying).
- An unconditional sales agreement (for the home you are selling).
This means all conditions are removed on both deals. No financing conditions, no inspection conditions, no “conditional on sale.” Everything must be finalized.
Lenders need this certainty because the bridge loan is paid back from the sale of your current home. If your sale isn’t guaranteed, they won’t lend the money.
Why Cornwall Homeowners Use Bridge Loans
A bridge loan can make moving much easier. Here are some common reasons homeowners use bridge financing:
- Closing dates aren’t lining up on your purchase and sale.
- You want to move over a period of multiple days.
- The seller of your new home wants a quicker closing date.
- Your buyer needs more time before their closing.
- You want to move only once and avoid storage or temporary housing.
- You want time to clean your current home after you move out.
A bridge loan gives you flexibility, but again, only once both deals are firm.
How a Bridge Loan Works
Here’s a simple example to show how bridge financing works:
- You are selling your home for $420,000.
- You still owe $240,000 on your mortgage.
- You have $180,000 in equity.
- You want to buy your next home for $500,000 and need a $100,000 down payment.
A bridge loan in Cornwall allows you to borrow the equity you’ll receive after your sale closes, even though the money isn’t in your hands yet.
Once your current home closes, the equity is released and the bridge loan is paid off.
How Long Does a Bridge Loan Last?
Most bridge loans only last a short time, usually from a few days to a few weeks. Some, although less common, can last up to a couple of months depending on the difference between the closing dates.
They are not meant to be long-term. They simply help you manage the gap between selling one home and buying another.
What Does a Bridge Loan Cost?
Bridge loans are usually very affordable compared to the stress and cost of rushing to sell. The cost normally includes:
- A small setup or administration fee
- A short-term interest rate
- Interest charged only on the days you use the loan
Your mortgage agent can give you an exact estimate based on your lender and your numbers.
What You Need to Qualify
To qualify for a bridge loan, lenders will require:
- Firm purchase agreement
- Firm sale agreement
- Strong credit history
- Proof of your remaining mortgage balance
- Details of your down payment
- Closing dates for both transactions
The numbers must clearly show that the equity from your sale is enough to cover the bridge amount you are borrowing.
Benefits of Using a Bridge Loan
Using a bridge loan in Cornwall offers some major advantages:
- Less stress - You avoid worrying about mismatched closing dates.
- No double-moving - You can move directly into your new home without temporary housing.
- Time to prepare your sale - You can clean, repair or patch and paint after you move out.
- More confidence when buying - You can make a strong offer knowing your down payment is covered.
When a Bridge Loan Won’t Work
A bridge loan isn’t an option if:
- Your current home is not sold
- Your sale is conditional
- Your purchase is conditional
- You are waiting for financing or inspection results
- You are hoping to buy now and sell “later”
In these cases, lenders won’t approve a bridge loan because the sale is not guaranteed.
Final Thoughts
A bridge loan in Cornwall can be a great solution for homeowners who want to buy before they sell, but only once both deals are firm.
If you need flexibility, want to avoid double-moving or have mismatched closing dates, a bridge loan might be the perfect tool to make your move smoother.
Ready to Explore Your Bridge Loan Options?
If you’re thinking about buying before selling, I can walk you through the numbers, explain your options in simple terms and help you understand whether a bridge loan is right for your situation.
