Primary Residence Bridge Loans: A Broker’s Guide

Bridge loans let a homeowner buy their next house before they sell the current one. Brokers who can place this product give their clients a real edge on competitive purchase deals.

In a market where inventory is tight and contingent offers get rejected, the bridge loan is one of the most useful tools in a broker’s kit. The client puts down a non-contingent offer on their next property using equity from the current home. The bridge funds at closing, the new home gets bought, and the original property gets sold within the loan term.

AHL’s Bridge Star program is the product that makes this work. Bridge Star is a 12-month interest-only loan secured by the existing primary residence. Interest is deferred until maturity, which means the client makes no monthly payment during the bridge period. When the departing home sells, the bridge gets paid off in full from the sale proceeds.

This guide covers when to position Bridge Star, the two structures available, AHL’s program parameters, and how the bridge connects to the permanent loan on the acquiring property.

What Bridge Star Solves

The bridge loan addresses one specific problem: a client wants to buy their next home before selling the current one. That problem shows up in four common patterns brokers see all the time.

• Non-contingent offers. In competitive markets, sellers reject offers contingent on the sale of another property. Bridge financing removes the contingency.
• Equity-rich, cash-poor clients. Homeowners with substantial equity but limited liquid assets cannot fund a down payment without bridge financing or a HELOC.
• Timing mismatches. Purchase and sale closing dates rarely line up. The bridge fills the gap so the client doesn’t lose the new home.
• Move-up buyers. Clients trading up to a more expensive property need to move equity forward without selling first.

The non-contingent offer scenario is the strongest pitch for brokers because it solves a problem the client may not even know they have until they’re outbid on the first house they want.

Two Bridge Star Structures

Bridge Star comes in two structures depending on whether AHL is originating the loan on the acquiring property.

Simultaneous

In the Simultaneous structure, AHL originates both the bridge loan on the departing property and the permanent loan on the acquiring property. The two loans are underwritten and closed together.

This is the stronger play for most scenarios. Higher LTV, lower rate, and a single lender across both sides of the move means less coordination friction.

Stand Alone

In the Stand Alone structure, AHL originates only the bridge. The permanent loan on the acquiring property goes through a different lender (or the client buys with cash). This gives brokers flexibility when a client already has financing arranged on the acquiring side or wants to shop the permanent loan separately.

Stand Alone comes with a lower LTV cap and a slightly higher rate to reflect that AHL is only doing half the deal.

Bridge Star Program Parameters: Primary Residence

The parameters below cover the primary residence use case, which is where most Bridge Star demand lives.

Owner Occupied Simultaneous

• Maximum LTV. 75 percent on loans up to $1.5 million. 70 percent on loans up to $2.0 million.
• Rate. 8.50 percent.
• Minimum credit score. 680.

Owner Occupied Stand Alone

• Maximum LTV. 70 percent on loans up to $1.5 million. 65 percent on loans up to $2.0 million.
• Rate. 9.00 percent.
• Minimum credit score. 680.

Loan Structure and Mechanics

• Loan term. 12-month ARM. 11 months interest-only.
• Payments. All interest is deferred. No monthly payments are due until the loan matures.
• Minimum loan amount. $100,000.
• Maximum loan amount. $2,000,000.
• Lien position. First lien only.
• Prepayment penalty. None.
• Escrows. Not required on the bridge. Required on the acquiring property loan.
• Cash out proceeds. Maximum $5,000 in excess of required reserves and funds to acquire the new property. Proceeds are delivered directly to title.

Borrower Eligibility

• US Citizens, Permanent Residents, and Living Trusts eligible.
• Foreign Nationals not eligible.
• Maximum 4 individuals on the loan.
• Borrower intent letter required, explaining the plan to purchase the new property and sell the existing one.
• Listing agreement required on the departing property.

Property Eligibility

• Eligible property types: SFR 1-4 units, PUD, condo, non-warrantable condo.
• Property condition C4 or better.
• Maximum 10 acres. No rural properties.
• Bridge Star is not available in: Alaska, Hawaii, Missouri, North Dakota, New York, South Dakota, and Texas.

Other Occupancy Types

Bridge Star also supports second home and investment property occupancies on the Simultaneous structure, with LTV capped at 60 percent on those scenarios. This guide focuses on the primary residence use case because that is where the bulk of broker volume sits and where the strongest broker pitch lives.

How Bridge Star Connects to the Acquiring Loan

Bridge Star is only half the deal. The acquiring property still needs a permanent loan. In the Simultaneous structure, the acquiring loan runs through AHL’s All Star or Rising Star programs, with income documented through Full Doc, Bank Statements, 1099, or Asset Qualifier depending on the borrower profile.

Two mechanics matter to brokers structuring these deals:

The Bridge Star payment is not included in the DTI of the acquiring loan. Because interest is deferred until maturity, there is no monthly payment to count against the borrower’s debt ratio on the permanent loan. This gives brokers meaningful flexibility when qualifying the client on the new home.

Common Bridge Star Scenarios

How to Submit Bridge Star Deals With AHL

A prior decline is the most under-worked asset in most brokers’ databases, because the instinct is to treat it as a closed door. Treat it instead as a file with a known defect and a knowable fix. Income grows, reserves build, credit heals, business tax returns season into their second year — and independent of any of that, the product menu available to you is broader than whatever the borrower was offered the first time. 

The re-engagement that works is specific and unsentimental. Skip the reassurance about being a “resource.” Name what you’d look at differently now. 

Bridge Star files run through the Galaxy Portal submission process at client.ahlend.com. There are a few unique elements compared to standard Non-QM submissions.

Step 1: Confirm Eligibility

Before pricing, confirm the basics: 680 minimum FICO, US Citizen or Permanent Resident,  departing property in an eligible state, and a listing agreement (or commitment to list) on the departing property.

Step 2: Price Both Sides

For Simultaneous deals, use the Loan Pricer at client.ahlend.com/quickpricer to price both the bridge and the acquiring loan. Both need to be structured at the same time. For Stand Alone, only price the bridge.

Step 3: Submit the Full Package Through Galaxy Portal

Standard Bridge Star submissions include:

• 1003, credit report, and ID
• Listing agreement for the departing property
• Borrower intent letter explaining the plan to purchase the new property and sell the existing one
• Purchase contract for the acquiring property
• Income documentation for the acquiring loan program (Full Doc, Bank Statements, 1099, or Asset Qualifier)
• Asset statements

Step 4: Close in the Correct Sequence

The acquiring property must have a clear-to-close before the bridge can close, unless the acquiring property is being purchased without financing. Bridge proceeds are delivered directly to title with the condition that all proceeds are returned if the acquiring property purchase falls through.

The Broker Takeaway

Bridge Star is one of the most underused tools in the Non-QM playbook. In a market where buyers face inventory competition and contingent offers get rejected, this product gives brokers something competitors often cannot offer.

The Simultaneous structure is the strongest play. Higher LTV, lower rate, and a single lender across both sides of the move. The Stand Alone structure exists for clients who want flexibility on the acquiring side, but it leaves margin on the table.

Brokers who position Bridge Star early in the client conversation, before the client knows they need it, build trust and capture deals competitors lose to financing structure issues.

Partner with American Heritage Lending

Bridge financing is a differentiator for brokers operating in competitive purchase markets. AHL’s Bridge Star program supports both wholesale and correspondent partners with a 12-month interest-only bridge structure, deferred payments, and dedicated Account Executive support on both sides of the deal.

AHL’s TPO division supports the full Non-QM product suite, including the permanent loan on the acquiring side of every Bridge Star transaction.

Have a Bridge Star scenario you want to talk through? Contact your Account Executive or call the AHL TPO team at (855) 340-9892.

Not yet a partner? Apply to become an approved broker at ahlendtpo.com and gain access to the full AHL Non-QM product suite.