Trying to buy your next home in North Allegheny before selling your current one? You are not alone. Many move-up buyers need a short-term financing bridge so they can write a strong offer without waiting for sale proceeds. In this guide, you will learn how a bridge loan compares with a HELOC, what each costs and requires, and how to choose the right path for an Allegheny County move. Let’s dive in.

Bridge loan vs HELOC: the basics

Buying before you sell often comes down to accessing your equity at the right time. Two common tools can help: a bridge loan and a HELOC. Both are secured by your current home, but they work very differently.

What a bridge loan is

A bridge loan is a short-term mortgage designed to cover the gap between buying your new home and selling your current one. It is usually interest-only with a term around 6 to 12 months. The principal is typically paid off when your existing home sells or when the term ends. Some lenders want to see a clear exit plan, which can include a signed sale contract on your current property.

What a HELOC is

A Home Equity Line of Credit, or HELOC, is a revolving line tied to your home’s equity. You draw funds as needed up to a limit. Rates are variable, often set at prime plus a margin. HELOCs usually have a draw period of several years followed by a repayment period. Many borrowers use a HELOC to fund a down payment, deposits, or temporary carrying costs while they own two homes.

How each option works in practice

Bridge loan mechanics

• Short-term lump sum secured by your current home, sometimes as a second lien.
• Payments are often interest-only until payoff at sale or maturity.
• Lenders may require an exit plan such as proof your home is listed or under contract.

HELOC mechanics

• Revolving credit with flexible draws and repayments during the draw period.
• Variable rate that can change over time.
• The lender may order an appraisal, run title, and complete a standard closing. In some cases, lines can be temporarily frozen based on underwriting rules.

Qualification and underwriting

Equity and loan-to-value

• Bridge loan: Lenders commonly expect substantial equity in your current home, often 20 to 30 percent or more, though limits vary by lender.
• HELOC: Underwriting is based on combined loan-to-value. Many lenders allow up to 80 to 85 percent combined, subject to their guidelines.

Income, credit, and reserves

Both products require income documentation, credit checks, and a debt-to-income review. Because you may be carrying two properties temporarily, underwriters look closely at your reserves and overall monthly obligations.

Title, liens, and coordination

• Bridge loans are often structured as junior liens. Lien priority matters when you are also getting a new first mortgage on the purchase.
• HELOCs are usually junior liens too. Your purchase lender may require the HELOC to be closed at or before the new loan closes, or formally subordinated. Get this in writing early.

Costs, interest, and timelines

What to expect on pricing

• Bridge loans typically have higher interest rates than standard mortgages and often higher than HELOCs. Upfront costs can include origination, commitment, and appraisal fees.
• HELOCs usually start with lower variable rates than bridge loans, but payments can rise if overall rates increase. Costs can include appraisal, closing, and possible annual or termination fees, though some lenders offer low or no-fee programs.

How long each takes

• HELOC: Plan for 2 to 6 weeks from application to available funds, depending on appraisal timing and lender workload.
• Bridge loan: Funding can be quick with the right documentation, though some approvals still take several weeks. If a sales contract or detailed exit plan is required, build in extra time.

Local Allegheny County considerations

Market timing and neighborhood variation

Days on market, inventory, and pricing trends in Allegheny County affect how long you may own two homes. Areas in the North Hills such as McCandless and Wexford can behave differently from neighborhoods in the City of Pittsburgh. Your plan should reflect the conditions in your specific community and price point.

Pennsylvania closing practices

In Pennsylvania, settlements commonly involve attorneys coordinating timing and documents. Recording and transfer timelines, as well as any transfer or local taxes, can affect net proceeds and when funds are available. Confirm these details with your lender and settlement team to avoid timing surprises.

Appraisals and property type

Allegheny County includes many older homes. Appraisals can surface condition items or valuation questions that impact how much you can borrow on a bridge loan or HELOC. Discuss potential low-appraisal scenarios with your lender and plan a backup.

Local lender familiarity

Regional banks and credit unions in Western PA often offer HELOCs and short-term bridge products. Working with lenders familiar with Allegheny County timelines, title practices, and attorney-led settlements can help you close more smoothly.

Pros and cons for move-up buyers

Bridge loan: pros

• Built for buy-before-you-sell situations.
• Provides a lump sum that can tap a large share of your equity quickly.
• Underwriting can factor in your home sale as the planned exit.

Bridge loan: cons

• Higher interest rate and fees than many alternatives.
• Short term adds pressure if your home sale is delayed.
• Increases exposure to carrying two mortgages plus the bridge loan.

HELOC: pros

• Typically lower initial interest cost than a bridge loan.
• Flexible draw and repayment features during the draw period.
• Can remain open as a safety cushion after your sale, depending on lender rules.

HELOC: cons

• Variable rate can increase your payment.
• Your purchase lender may require closing or subordinating the HELOC, which adds steps.
• The maximum line may not cover the full lump sum you need for a down payment.

When one option tends to fit better

Choose a bridge loan when you need a sizable, immediate lump sum and have a clear exit, like a home under contract. It is purpose-built for short-term timing. Choose a HELOC when you want lower initial cost and flexibility, you have enough equity to cover a typical down payment, and you prefer an open line for unexpected costs while you list and sell.

Key risks and how to manage them

Common risks include carrying two mortgages plus a bridge loan or HELOC, a sale that falls through, appraisals that limit available funds, lender restrictions on lien position, and closing schedules that do not align.

Smart mitigation moves

• Build reserves. Aim for 3 to 6 months of total housing costs to cover double payments if needed.
• Nail down lender commitments in writing. Confirm amounts, lien position, fees, and timelines for both the bridge or HELOC and your new mortgage.
• Use contract tools carefully. Consider a financing or sale contingency, a clear sale deadline, or a kickout clause, understanding the tradeoffs in a competitive market.
• Stage the sale process. If timing allows, list your current home first. Consider short-term rental options as a backstop.
• Plan for appraisal variance. Set a range for acceptable net proceeds so you can respond quickly to good offers.
• Coordinate early with attorneys and title. Align settlement dates and confirm recording, transfer taxes, and fund availability timelines in Pennsylvania.

For tax treatment of interest on either product, speak with a qualified tax professional, as federal rules can affect deductibility.

Lender partnership checklist

Use this quick checklist to keep both transactions moving together:

• Meet lenders early. Do this before writing offers so you can compare bridge and HELOC options.
• Get a purchase preapproval that reflects a possible second lien or open HELOC.
• Request written product summaries outlining maximum advance, rate type, fees, term, lien position, and exit requirements.
• Prepare documents. Have recent mortgage statements, tax bills, insurance, pay stubs, W-2s, tax returns, bank statements, and any recent appraisals ready.
• Confirm lien policies. Ask your purchase lender if the HELOC must be closed or subordinated. If using a bridge loan, confirm whether the new mortgage allows that subordinate lien.
• Order appraisals early. Coordinate for both the HELOC or bridge and the purchase.
• Align settlement dates. In Pennsylvania, expect attorney involvement and confirm timelines in writing.

Timing guide for planning

• HELOC approval and funding availability: about 2 to 6 weeks, depending on appraisal and underwriting.
• Bridge loan approval and funding: about 1 to 6 weeks, depending on lender requirements and your exit documentation.
• New purchase mortgage: typically 30 to 45 days, subject to local settlement practices.
• Start lender conversations 6 to 8 weeks before your target purchase close. This builds buffer time for appraisals, title work, and inter-lender coordination.

A conservative example plan

• Reserves: Keep at least 3 months of combined housing expenses on hand, including both mortgages and any bridge or HELOC payments.
• Commitment timing: Secure written approval for your bridge or HELOC before your purchase contract is fully binding.
• Sale deadline: Include a clear timeline in your purchase agreement tied to your sale, or a pre-agreed extension path if you need more time.

Putting it all together

If you need a lump sum and have a clear sale path, a bridge loan can give you the upfront cash to win the home you want. If you prefer flexibility and lower initial cost, a HELOC can cover a down payment and temporary carrying costs while you sell. The best choice depends on your equity, timeline, and tolerance for variable payments. A well-coordinated plan with your lender, agent, and settlement team is what keeps everything on track in Allegheny County.

Ready to compare your options for a North Hills move-up? Reach out to the Beth Danchek Group to map a buy-before-you-sell plan that fits your timeline.

FAQs

What is a bridge loan for buy-before-you-sell in Allegheny County?

• It is a short-term, interest-focused mortgage secured by your current home that provides a lump sum to help you purchase first and pay it off when your old home sells.

How fast can I get a HELOC in the Pittsburgh area?

• Many lenders take about 2 to 6 weeks from application to available funds, depending on appraisal timing and underwriting capacity.

Will my purchase lender make me close my HELOC before closing?

• Some purchase lenders require the HELOC to be closed or subordinated, so confirm their policy in writing early in the process.

Are bridge loan payments usually interest-only?

• Often yes, during the short term, with the principal typically due when your current home sells or at loan maturity.

Are interest payments on a bridge loan or HELOC tax-deductible in Pennsylvania?

• Deductibility depends on federal rules and your situation, so consult a qualified tax professional for guidance.

What if my current home does not sell as quickly as planned?

• Maintain strong reserves, set clear contract deadlines, and have backup housing or financing strategies to manage extended carry time.