Yes — Florida homeowners can use a short-term bridge loan to buy a new home before selling their current one by borrowing against the equity in their existing property. A bridge loan usually runs 6 to 12 months and is repaid in full when the old home sells. It typically costs more than a standard mortgage, with interest commonly in the 8%–12% range plus 1%–3% in fees. Most Florida lenders require substantial home equity, good credit (often around 680 or higher), sufficient income, and an active listing on your current home. The main payoff is the ability to make a strong, non-contingent offer and move only once.
Caught Between the Home You Want and the One You Haven’t Sold
You found it. The house with the right kitchen, the right street, the right number of bedrooms. There is one problem. You still own the home you live in now, and carrying two mortgage payments while you wait for it to sell is not comfortable.
With 30-year mortgage rates generally staying above 6.5% through 2026, plenty of Florida homeowners feel frozen in exactly this spot. Sell first, and you might scramble for somewhere to live. Buy first, and you risk two payments at once.
A bridge loan is one way out of that bind. It can give you the cash to move forward now and the breathing room to sell on your own timeline. This guide covers how bridge loans work in Florida, what they cost, who qualifies, and the smarter alternatives worth weighing first.
What a Bridge Loan Actually Is, in Plain English
Other names you might hear are swing loan, gap loan, or interim financing. They all describe the same idea: temporary money that covers the down payment and closing costs on your new home while your cash is still tied up in the old one.
Two terms come up a lot. Equity is the share of your home you actually own, the market value minus what you still owe. The other is the offer you can make because of it. A non-contingent offer is an offer to buy a home that is not dependent on first selling your current home, which can make your bid more competitive to Florida sellers.
If you want to talk through whether this fits your situation, you can talk to a Florida mortgage advisor.
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How Much a Bridge Loan Costs in Florida
Why the higher price? A bridge loan is short-term, and the lender takes on more risk, so the rate sits above what you would pay on a regular 30-year mortgage. Loan-to-value, or LTV, is the loan amount measured against your home value, and a lower LTV often earns better pricing.
Many Florida bridge loans are interest-only, and some defer payments entirely until your old home sells, so you are not juggling two full mortgage payments at once. The trade-off is time and cost. You pay more for the convenience of moving once instead of twice.
Bridge Loan vs. HELOC, Home Equity Loan & Cash-Out Refinance
Each tool taps your equity differently. A HELOC, or home equity line of credit, works like a credit card secured by your home. You draw what you need and usually pay a variable rate. A home equity loan hands you a lump sum at a fixed rate. A cash-out refinance replaces your existing mortgage with a larger one and gives you the difference in cash, which can be costly if you hold a low rate you would rather keep.
| Option | Typical term | Rate type | Payments | Keeps low-rate mortgage? | Best for |
|---|---|---|---|---|---|
| Bridge loan | 6-12 months | Fixed, higher | Interest-only or deferred | Yes | Buying fast before you sell |
| HELOC | Draw up to ~10 yrs | Usually variable | Interest-only during draw | Yes | Flexible, lower-cost access if you have time |
| Home equity loan | 5-20 years | Fixed | Amortizing | Yes | A predictable lump sum |
| Cash-out refinance | 15-30 years | Fixed or ARM | Amortizing | No | Buyers not keeping a low rate |
How a Florida Bridge Loan Works, Step by Step
- 1Estimate your usable equityA lender reviews your home value and current mortgage to see how much you can borrow.
- 2Apply and documentYou provide income, asset, and property details, much like any mortgage.
- 3UnderwritingExpect roughly 35 to 40 days, since these loans take closer review than a standard mortgage.
- 4Close and buyYou use the bridge funds for the down payment and closing costs on the new home.
- 5List and sellMany lenders require your current home to be actively listed on the MLS.
- 6RepayWhen your old home sells, the proceeds pay off the bridge loan in full.
Want a clear picture of your numbers first? You can get a no-obligation equity estimate.
Do You Qualify? Florida Bridge Loan Requirements
Lenders are protecting against one scenario above all: your old home not selling quickly. So they check that you could manage the payments involved, and they weigh your debt-to-income ratio, or DTI, which compares your monthly debts to your monthly income. Many programs keep DTI at or below 50%.
There is good news for buyers worried about two payments on paper. If your current home is already under contract with a buyer who has final loan approval, some lenders can leave your departing mortgage payment out of the DTI calculation. Because complex files like self-employed borrowers, foreign nationals, and jumbo buyers each have their own rules, it helps to work through the details with the Pegasus USA lending team before you apply.
Florida-Specific Things That Trip Buyers Up
A few Florida realities deserve attention before you sign. Insurance can shape your loan. Windstorm and flood coverage are common requirements in much of the state, and those premiums fold into your monthly costs, which can affect your DTI and slow underwriting. Coastal and South Florida buyers in counties like Miami-Dade, Broward, and Monroe often feel this most.
Homestead matters too. Florida homestead exemption and the Save Our Homes benefit can limit how fast your assessed value rises, and portability may let you carry part of that benefit to your next primary home. Timing your sale and purchase can affect what transfers, so plan ahead.
Condos add a layer. Financing a condominium, especially a non-warrantable condo (one that does not meet standard Fannie Mae or Freddie Mac guidelines), can be harder and may change your options. Loan size is the last piece. For 2026, the baseline conforming loan limit is $832,750 across most Florida counties, with Monroe County (the Keys) higher at $990,150. Above those limits, you move into jumbo territory, which carries stricter terms.
Common Mistakes to Avoid
- •Assuming a bridge loan costs the same as your current mortgage. Budget for the higher rate and the 1% to 3% in fees.
- •Skipping an exit plan. If your old home sells slowly, your carrying costs climb, so price it realistically from day one.
- •Overlooking the listing requirement. Many Florida lenders will not fund until your current home is on the MLS.
- •Underestimating insurance. Windstorm and flood premiums can affect both your budget and your approval.
- •Forgetting homestead portability. Not planning the Save Our Homes transfer can cost you at tax time.
- •Shopping only one lender. Few lenders offer bridges and terms vary widely, so compare before you commit.
Frequently Asked Questions
Can I get a short-term bridge loan in Florida to buy a home before selling my current one?
How much does a bridge loan cost in Florida?
What are the requirements to qualify for a bridge loan in Florida?
Is a bridge loan or a HELOC better for buying before selling in Florida?
How long does a bridge loan last, and how is it repaid?
Do I have to list my current home to get a bridge loan in Florida?
Can I make a non-contingent offer in Florida without selling my home first?
What are the alternatives to a bridge loan for Florida homeowners in transition?
Ready to make your move with confidence?
Pegasus has helped Florida homeowners navigate buy-before-you-sell transitions for years, in plain English and without pressure. See what your equity can do.
Start your application onlineAbout the author
Pegasus Lending Team
Mortgage Professionals · Pegasus Mortgage Lending (USA) · Miami, Florida
The Pegasus Mortgage Lending USA team is based in Miami, Florida, and specializes in helping homebuyers, investors, and foreign nationals navigate the Florida real estate market. With expertise spanning FHA loans, conventional mortgages, jumbo financing, VA loans, and Foreign National programs, the team guides clients through every step of the mortgage process with clarity and transparency.
Meet the Pegasus USA Team →Sources & References
- FHFA — Conforming Loan Limit Values for 2026: fhfa.gov
- Florida Realtors — FHFA Sets 2026 Caps: floridarealtors.org
- HomeLight — Bridge Loans in Florida: homelight.com
- Rocket Mortgage — What is a bridge loan: rocketmortgage.com
- Consumer Financial Protection Bureau (CFPB): consumerfinance.gov
- Florida Office of Financial Regulation (OFR): flofr.gov
- Florida Department of Revenue — homestead & Save Our Homes: floridarevenue.com/property