Bridge Loan or Home Equity Line?
Program and regulatory figures verified September 25, 2026. Details change; confirm your scenario with us.
These two products reach the same equity and behave differently under pressure. The deciding factors are timing, how the lender views two payments, and in some states the constitution.
The structural difference
A home equity line is revolving credit secured by your home, generally with a draw period and a variable structure. It is designed to sit there and be used repeatedly over years.
A bridge loan is designed to be repaid once, from a specific event, soon. That event is the sale of the departing home.
That difference explains most of the practical divergence between them. A HELOC lender is underwriting a long relationship with your current property. A bridge lender is underwriting a transition.
Timing is usually what decides it
The common failure is sequencing. A HELOC is easiest to obtain while you have one mortgage and clean ratios. Once you are under contract on a second home, or already carrying two payments, qualifying for a new line against the departing property gets substantially harder.
A bridge loan is built for that moment. It expects the overlap, because the overlap is the reason it exists.
So the honest guidance is: if a HELOC is your plan, open it early. If you are already in the middle of the move, a bridge or one of the other structures is the more realistic path.
Where the state removes the choice
This is not uniform across the country and the difference is large. Texas caps all liens against a homestead at 80% combined loan-to-value under Article XVI Section 50(a)(6) of its constitution, and prohibits a subordinate home equity line outright. For most Texas homeowners that closes the HELOC route for this purpose.
Utah has no equivalent provision. Utah Code 78B-5-503 protects a dollar amount of equity from creditors; it does not limit what liens an owner voluntarily grants. Both products are on the table in Utah, and the ceiling comes from investor guidelines.
Neither one helps your Utah exemption
Worth stating because it is easy to miss. Utah's 45% residential exemption follows occupancy under Utah Code 59-2-103(6). Borrowing against the departing home does not change who lives in it, so under either product the departing home sits vacant while marketed and holds no exemption.
The only structure that preserves it is converting the home to a tenant's primary residence under (6)(b)(ii). See the tenant exception page.
Side by side
| Bridge loan | Home equity line | |
|---|---|---|
| Exit | The sale of the departing home | Open-ended, revolving |
| Best obtained | During the move | Before the move begins |
| Tolerates two payments at application | Built for it | Often not |
| Available in Utah | Yes | Yes, no state CLTV cap |
| Available in Texas | Subject to the 80% homestead cap | Subordinate lines prohibited |
| Keeps the Utah 45% exemption | No | No |
The full set of options is on the structures page, and the basics are on how a bridge loan works.
Frequently asked questions
Is a bridge loan or a HELOC better for buying before selling?
It usually comes down to timing. A home equity line is easiest to obtain before you are carrying two mortgages, while a bridge loan is underwritten with the overlap in view. If the line is not already open when the move begins, a bridge or another structure is generally the more realistic route.
Can I get a HELOC on my Utah home to buy the next one?
Yes. Utah places no constitutional cap on homestead liens. Utah Code 78B-5-503 protects a dollar amount of equity from creditors and does not restrict voluntary liens, so both a bridge loan and an equity line are available subject to investor guidelines.
Why can't Texas homeowners use a subordinate HELOC for this?
Article XVI Section 50(a)(6) of the Texas Constitution caps all liens against a homestead at 80% combined loan-to-value and prohibits a subordinate home equity line. That state rule removes the option for most Texas homeowners, which is why the same plan does not travel between Texas and Utah.
Does borrowing against my Utah home affect its property tax exemption?
No, and that cuts both ways. Utah's 45% residential exemption follows occupancy under Utah Code 59-2-103(6), so a lien changes nothing. The departing home still sits vacant while marketed and holds no exemption. Only converting it to a tenant's primary residence preserves it, under (6)(b)(ii).
Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content about financing, not a loan commitment and not legal, tax, or real estate advice. Utah's residential exemption is administered county by county under Utah Code 59-2-103.5, and eligibility depends on your facts; your county assessor, your CPA or a Utah attorney, and your real estate agent each handle their own part. Loans are subject to borrower and property qualification.