How Bridge Loans Help Havertown Sellers Move Up

Wish you could buy your next Havertown home without waiting for your current one to sell? You are not alone. In a tight market, timing matters and many homeowners want to write a strong, non‑contingent offer. This guide shows you how bridge loans work, what they cost, when they make sense in Havertown, and how our Compass tools can help you move with confidence. Let’s dive in.

What a bridge loan is

A bridge loan is short‑term financing that lets you tap your home equity to buy your next home before your current one sells. Most are secured by your current home, carry interest‑only payments, and are paid off when you sell or refinance. Terms commonly run a few months up to about a year, and underwriting focuses on your equity and your exit plan. This consumer guide explains the basics.

Why it fits Havertown

Havertown is a mid‑ to upper‑price suburban market with tight inventory. A recent market snapshot shows a median listing price around $575,000 as of June 2025, which signals healthy demand for well‑presented homes (see the Havertown market report). County‑level trackers also show low months of supply and relatively short days on market, which favors sellers and makes non‑contingent offers attractive to listing agents (view Delaware County trends). If you want to move up or downsize without temporary housing, a buy‑before‑you‑sell strategy can help you compete.

How a bridge loan works

Here is the typical structure:

• Collateral: Usually your current home, sometimes paired with the new purchase.
• Payments: Often interest‑only each month, with the principal paid off from your sale proceeds or a refinance.
• Timeline: Plan for about 1 to 4 weeks from application to close, depending on appraisal, title, and underwriting speed.
• Lender conditions: Many lenders want your current home listed or under contract, a recent appraisal, and a clear title. Some also require the permanent mortgage.

Learn more about common terms and timelines in this overview.

When it makes sense

You are a good candidate if several of these apply:

• You have significant equity and can stay within typical combined loan‑to‑value ranges lenders expect. See CLTV guidance in this Experian explainer.
• You need to buy first to write a stronger offer, avoid a double move, or meet a firm relocation date.
• You can cover short‑term carrying costs and keep a reserve if your sale takes longer. Review cost factors in this bridge financing overview.
• You have a clear exit plan: a marketable home, pricing strategy, and strong listing preparation to support a timely sale.

Typical timelines

Scenario A: Fast buy, quick sale (30–90 days)

• Pre‑qualify with a bridge lender.
• Go under contract on the new home and finalize bridge underwriting.
• Close on the new home, list your current home immediately, then sell and pay off the bridge.

Scenario B: Buy first, longer runway (90–180+ days)

• Use the bridge for a longer window if the product allows.
• Budget for more interest and possible extension fees.
• Monitor market shifts closely with your agent.

Scenario C: Back‑to‑back closings (days apart)

• Coordinate all parties for near‑simultaneous settlements.
• The bridge may be outstanding only a few days, but it must be approved in advance.

You can find more timeline context in this consumer guide.

Costs to expect

Bridge loans usually carry higher rates than long‑term mortgages. Many are interest‑only with a balloon payoff at sale or refinance. Ask each lender for a written term sheet that outlines rate, origination fees, appraisal and closing costs, prepayment rules, and extension policies. For a quick primer on how pricing works, see LendingTree’s overview.

A simple Havertown example (hypothetical)

• Current home value: $600,000; mortgage balance: $150,000; equity: $450,000
• Target purchase price: $800,000; 20% down: $160,000
• Bridge loan amount used for down payment: $160,000
• Illustrative bridge rate: 8% annual, interest‑only

Estimated monthly interest: $160,000 × 0.08 ÷ 12 ≈ $1,066. Over six months, that is about $6,400, plus any appraisal, origination, and closing costs. Actual pricing varies by lender and market. Use conservative sale‑net assumptions when planning your budget.

Compass options with Wagner

As a Compass team, Wagner Real Estate Group can coordinate Compass Bridge Loan Services to help you compare short‑term lenders and pair financing with a strong listing plan. Several Compass resources also describe the Bridge Loan Advance, an affiliated option provided by Notable Finance, LLC (NMLS# 1824748) that, for qualified Compass sellers, can front up to six months of bridge payments and eligible closing costs while the bridge is outstanding. Availability, terms, and eligibility are set by Notable and the bridge lender, and must be confirmed case by case. You can review a summary of Compass’s workflow in this resource and learn about Notable at Notable’s site.

Key points to remember:

• Compass is not the bridge lender.
• Eligibility and program availability vary by state and lender.
• The Bridge Loan Advance terms, including any promotional APR while outstanding, are determined by Notable underwriting.

Risks and safeguards

Bridge loans are powerful, but they are not risk‑free. Plan for:

• Carrying two properties longer than expected. Build a reserve for 3 to 6 months of combined costs. See cost planning tips in this guide.
• Appraisal or title issues that reduce your available equity. Order a title check early and get a current valuation. See common requirements in this overview.
• Market risk. Pricing or days on market can shift. Strong staging, pricing, and preparation help reduce time to contract.
• Extension fees or prepayment rules. Ask for extension policies and any penalties in writing.

PA transfer tax basics

In Pennsylvania, realty transfer tax typically includes a 1% state tax plus a local tax. Haverford Township levies a 1% township transfer tax, so the combined rate is commonly about 2% unless a contract allocates it differently or an exemption applies. Always confirm the current rate and who pays in your agreement of sale, and verify at settlement with your title company. You can review Haverford Township’s ordinance language here.

Alternatives to consider

• HELOC or home equity loan. Often lower cost than a specialized bridge, but rules on combined LTV and reserves vary by lender. See options in this article on buying and selling at the same time.
• Sale contingency. Low cost, but typically weaker in competitive situations. Learn more about contingencies in this bridge loan explainer.
• Buy‑before‑you‑sell and guaranteed‑sale programs. Fintech providers offer convenience with different fee structures and buyout terms; compare carefully. For a landscape overview, see this roundup.

Your step‑by‑step plan

• Early consult. We help you model cash flow, including current mortgage, projected sale net, and reserves, using conservative numbers. See budgeting tips in this overview.
• Lender match. We connect you with short‑term lenders through Compass Bridge Loan Services and request clear term sheets with rate, fees, CLTV limits, and appraisal timing. If you want the Compass Bridge Loan Advance, we start the Notable path early.
• Prepare to sell. Sign listing documents, then align pre‑sale improvements, media, and marketing to shorten days on market and support your exit plan.
• Coordinate closings. We align the purchase lender, bridge lender, title, and your attorney so payoff and recording are seamless, and transfer tax is confirmed per contract.
• Payoff and move in. Once your home is under contract or sold, we coordinate payoff of the bridge and any advance at settlement.

Ready to move up?

If buying first would help you win the right home in Havertown, let’s talk through your numbers and options. Contact the Wagner Real Estate Group to map your plan and see if a bridge loan strategy is a fit for your goals.

FAQs

What is a bridge loan for homebuyers?

• A bridge loan is short‑term financing that uses your home equity so you can buy your next home before selling your current one, with interest‑only payments and payoff at sale or refinance (learn more).

How competitive is the Havertown market today?

• Recent snapshots show a median listing price near $575,000 and tight inventory, which can favor non‑contingent offers from buyers (see the Havertown report and county trends).

What does a bridge loan cost compared to a mortgage?

• Rates are typically higher than a 30‑year mortgage, often interest‑only, with additional appraisal, origination, and closing costs. Ask each lender for a written term sheet (cost primer).

How much equity do I need for a bridge loan?

• Lenders often cap combined loan‑to‑value below full value, commonly around 70% to 80% depending on the program, credit, and underwriting (CLTV basics).

What is Compass’s Bridge Loan Advance and who provides it?

• For eligible Compass sellers, the Bridge Loan Advance is an affiliated option provided by Notable Finance, LLC (NMLS# 1824748) that may front up to six months of bridge payments and eligible closing costs; availability and terms depend on Notable and your bridge lender (program summary).

Who pays the realty transfer tax in Haverford Township?

• Pennsylvania typically has a 1% state and 1% local transfer tax in Haverford Township, for about 2% combined; the buyer and seller split is negotiable in the contract, so confirm with your title company (ordinance reference).