Are you trying to buy your next Greenwood Village home while your equity is tied up in your current one? You want to move once, protect your finances, and keep your offer competitive. This guide compares a bridge loan with a home-sale contingency so you can choose the path that fits your timing, risk, and budget. You’ll see local context, clear costs, contract tips, and a simple decision framework. Let’s dive in.

First, know your options

Bridge loan

A bridge loan is short-term financing that uses your current home’s equity to help you buy your next home before you sell. These loans often run 6 to 12 months and are repaid when your current home closes or when you refinance into a regular mortgage. They can close quickly and make your offer non-contingent, which can help in competitive moments. You can review how these loans work in this overview from Bankrate.

• Learn more: the basics of a bridge loan at Bankrate’s guide.

Home-sale contingency

A home-sale contingency is a clause in your offer that says you only have to close if your current home sells within an agreed window. Sellers often counter with a kick-out clause that lets them keep showing the home and gives you a short deadline to remove your contingency if a better offer appears. The exact deadlines and remedies are contract-specific and need careful drafting. See common contingency structures in this explainer from Investopedia.

Greenwood Village market reality

Greenwood Village sits at higher price points, often in the low to mid seven figures. That means many move-up buyers have meaningful equity, which can make bridge strategies possible. Across the broader Denver metro, inventory expanded through 2024 into mid 2025, and some analysts called it a buyers’ market with longer days on market. That backdrop can make sellers more open to well-structured contingencies in some segments, though micro-conditions by price band still matter. See the Denver context in this Axios report.

When a bridge loan makes sense

• You want your offer to be non-contingent to improve your negotiating position. A faster, cleaner close can help you win the home you want. Bankrate notes that bridge loans can close quickly.
• You have strong equity and reserves, and you’re comfortable with short-term interest and fees.
• You need timing certainty to avoid temporary housing or storing belongings.

Watch-outs:

• Bridge loans cost more than traditional mortgages and may include 1 to 3 percent in fees plus higher rates. You also carry the risk of two loans if your sale is delayed. See cost and underwriting factors in Bankrate’s and CNBC’s guides.

When a home-sale contingency fits

• You prefer to avoid short-term financing and the risk of carrying two properties.
• Your target home has been on the market for a while or competition is light.
• You can meet clear deadlines to list, go under contract, and close on your current home.

Consider:

• Your offer may be less competitive, and sellers often add a kick-out clause with strict timelines. Review typical terms in Investopedia’s overview.

Costs and timelines at a glance

• Interest and fees: Bridge loans usually carry higher interest than standard mortgages plus upfront fees often in the 1 to 3 percent range. See examples and common structures in Bankrate’s guide.
• Speed to close: Some bridge loans can close in days to a few weeks, which can help you present a faster, more certain closing. Source: Bankrate.
• Underwriting: Lenders review credit, debt-to-income, and loan-to-value, and they may require proof your current home is listed or likely to sell. You may need to show you can carry both payments if needed. See lender criteria in CNBC’s explainer.

Alternatives if you want flexibility

• HELOC or home-equity loan: Many buyers tap a HELOC for the down payment. Upfront fees are often lower than a bridge loan, though HELOC rates are usually variable. Rate context is available in Bankrate’s HELOC overview.
• Piggyback 80-10-10: Pair a first mortgage with a second to reach your target down payment and avoid PMI. See how these work at Investopedia.
• Carrying two mortgages briefly: If your finances allow, you can close on the new home and sell the old one shortly after. Lenders will underwrite your debt-to-income and reserves. Review considerations in Bankrate’s bridge loan guide.

Colorado contract must-knows

• Standard forms and disclosures: Colorado uses standardized forms and has broker disclosure duties regarding material facts. A buyer’s need to sell can be material and should be handled carefully. See the broker-law FAQ from Colorado firm Frascona, Joiner, Goodman & Greenstein: broker duties overview.
• Drafting contingencies: Spell out deadlines, kick-out rights, and remedies. Make sure you understand how earnest money is handled in each scenario. For common clause structures, review Investopedia’s guide.
• Risk if timelines slip: If you waive or miss other contingencies and your home doesn’t sell, you could be in breach unless the home-sale contingency is drafted to protect you. See this Colorado practice note on risk allocation from Frascona: client vs. customer analysis.

A simple path to choose

1. Get your numbers. Ask a local lender for a full pre-approval, plus a bridge or HELOC quote with itemized rates, fees, and required reserves. A clear cost estimate helps you compare options. For bridge-loan cost basics, see LendingTree’s overview.

2. Map your sale timeline. Price and prep your current home with a plan for listing, marketing, and probable days on market in your price range.

3. Stress-test your budget. Model a few timelines, including one where your sale takes longer. Include two mortgage payments, taxes, insurance, and utilities. Underwriting expectations are outlined in CNBC’s guide.

4. Choose your offer strategy. If speed and certainty matter most, a bridge-backed, non-contingent offer can help. If risk control matters most, a well-drafted home-sale contingency with clear deadlines may fit.

5. Prepare your paperwork. Keep your pre-approval, proof of funds, and listing documents ready. Clean paperwork can ease seller concerns in either path.

What we do for you in Greenwood Village

You deserve a clear plan that fits your timeline and comfort level. We help you compare bridge, contingency, and HELOC options against live market conditions, then structure an offer that protects your interests and keeps you competitive. From pricing and prep to negotiation and closing, you work directly with the principals for steady, expert guidance.

Ready to map your best path to your next Greenwood Village home? Connect with Gail Wheeler and Kelly Baca for a thoughtful, local strategy.

FAQs

What does a bridge loan typically cost in Greenwood Village price ranges?

• Expect higher rates than a standard mortgage and fees often around 1 to 3 percent of the loan amount; for example, a 2 percent fee on a $400,000 draw is $8,000, plus monthly interest until you sell or refinance (overview: Bankrate).

How long do I have to repay a bridge loan, and what if my home doesn’t sell in time?

• Many bridge loans run 6 to 12 months; lenders may require you to sell or refinance by the end of the term, and extensions depend on the lender’s policy (see structures in Bankrate’s guide).

Will a bridge loan make my offer stronger than a home-sale contingency in Greenwood Village?

• Often yes, because non-contingent offers reduce seller risk, though in segments with more inventory sellers may consider well-structured contingencies; Denver metro conditions shifted toward more buyer leverage in 2025 per Axios.

Can I use a HELOC instead of a bridge loan?

• Many buyers use a HELOC for the down payment due to typically lower upfront costs, though rates are often variable and total loans usually must fit combined loan-to-value limits (rate context: Bankrate).

As a seller, what protections should I request if I accept a contingent offer?

• Consider a kick-out clause with a short cure period, higher earnest money, and clear deadlines for the buyer’s listing and contract milestones (common tools described by Investopedia).

What documents do lenders usually require for bridge financing in Colorado?

• Expect full income and asset documentation, a pre-approval, an appraisal, and often proof that your current home is listed or likely to sell; lenders also review your ability to carry both payments if needed (see underwriting factors in CNBC’s guide).