Shopping for your next home in South Charlotte while your current place is still on the market can feel like a tightrope walk. You want the best timing, the fewest headaches, and the strongest offer possible. Bridge financing can help you buy first, then sell, so you avoid moving twice and keep your momentum. In this guide, you’ll learn how bridge loans work, what they cost, and how to use them wisely in South Charlotte’s market. Let’s dive in.
Bridge financing, explained
Bridge financing is a short-term loan that lets you tap your current home’s equity to close on a new home before your sale is complete. Terms are usually 3 to 12 months and often interest-only. Rates and fees tend to be higher than standard mortgages because the loan is short term and specialized, according to a national overview from CNBC.
There are two common structures. One sits behind your current mortgage as a second loan. The other pays off your existing mortgage and replaces it temporarily. Lenders size the loan based on your equity and combined loan-to-value limits. Many will want the current home listed for sale and will review your credit, debt-to-income, and repayment plan for the permanent mortgage (see Realtor.com’s guide to bridge loans).
Why timing matters in South Charlotte
South Charlotte submarkets move at different speeds. In SouthPark, recent reports showed median days on market in the high 40s and a median sale price in the high 600-thousands in late 2025. Higher-end areas like Myers Park often carry seven-figure values and can see longer timelines in some months. That spread in days on market means you should size your bridge term with a buffer.
Citywide trends also matter. The Charlotte metro has seen steady price growth, which has pushed competition and pricing higher in desirable neighborhoods. Local coverage notes the region is no longer a pronounced bargain versus the national median, which adds pressure to act quickly when the right home hits the market (Axios on Charlotte price growth).
How a bridge loan works step by step
- Get prequalified for both the bridge loan and your long-term mortgage. Ask for rate, fees, and an APR estimate for each product so you understand the true cost (CNBC overview).
- List your current home and set pricing and presentation to shorten days on market. Your lender may require an active listing.
- Make your offer on the new home without a home-sale contingency. The bridge funds your down payment or payoff so you can close.
- Close on your purchase. You will make interest-only payments on the bridge until your sale closes.
- Use sale proceeds to pay off or refinance the bridge at your sale closing. Confirm payoff instructions with your closing attorney and lender.
Multiple lender types offer these products, including banks, credit unions, brokers, and specialty programs. For example, regional banks like FirstBank publish consumer details about bridge options and timelines (FirstBank bridge loan page).
What it costs
- Interest rate: commonly mid single to low double digits, often about 6 to 12 percent depending on credit, equity, and lender. Many loans are interest-only during the term (CNBC overview).
- Fees and closing costs: often 1 to 3 percent of the loan amount, including origination, appraisal, title, and escrow. Ask for an APR that includes fees.
- Loan size limits: lenders may cap at a percentage of your combined loan-to-value, often around 65 to 80 percent, and will underwrite both the bridge and your end financing (Realtor.com bridge guide).
Quick cost comparison for 3 months
The numbers below are general, not quotes. Always request written lender estimates.
| Option | Upfront cost | Monthly cost | Best use | Watchouts |
|---|---|---|---|---|
| Bridge loan | Typically 1–3% in fees | Interest-only. On $100,000 at 6–12% equals about $500–$1,000 per month | Winning a home without a sale contingency, avoiding a double move | Higher rate and fees, short term clock |
| HELOC | Usually lower fees | Interest-only at a lower rate than most bridge loans | Lower-cost equity access if you qualify and have time to set it up | May take longer, subject to lender rules |
| Carry two mortgages | Standard closing costs on the new loan | Two full mortgage payments until you sell | If you qualify for both payments and want to avoid bridge fees | Higher DTI, cash flow strain |
For alternatives and tradeoffs, see this consumer overview of bridge options and iBuyer-style services from American Express Credit Intel.
When a bridge loan makes sense
- You have strong equity, solid credit, and can qualify for your end mortgage.
- You want to make a non-contingent offer in SouthPark, Ballantyne, or Myers Park to be more competitive.
- You prefer to move once and want time to prepare your current home for market.
- You can reasonably expect your sale to close within the loan term, with a buffer.
Know the risks
- You may carry two payments for a while. Many products require you to budget for your existing mortgage plus bridge interest until your sale closes (CNBC overview).
- The effective cost is higher than a HELOC or standard mortgage.
- If your home takes longer to sell, you might need an extension or a refinance, which can add cost.
North Carolina closing and tax notes
- North Carolina collects a real estate transfer documentary stamp tax, generally $0.35 per $100 of the sales price. Your closing attorney will calculate the exact amount and who pays it based on your contract (NC transfer tax overview).
- Mecklenburg County property taxes continue during your bridge period. Aggregated data show an average effective rate around 1.0 percent of value, but verify your parcel with the county’s assessor or tax collector (Mecklenburg tax context).
- Coordinate prorations, HOA payoffs, and any post-closing occupancy or rent-back with your attorney to keep timelines aligned.
A smart timeline for South Charlotte
- 3 to 6 weeks before you offer
- Get your mortgage payoff and equity estimate.
- Prequalify with a lender that offers bridge loans. Ask for rate, fee, and APR comparisons for both the bridge and your end mortgage. Confirm how they calculate debt-to-income if your home has not sold yet (CNBC overview).
- Ask about funding speed, term length, and payment options, such as interest-only (FirstBank bridge loan page).
- While listing your home
- Price and prepare to shorten days on market. In SouthPark, recent median days on market were multiple weeks, so plan your bridge term with cushion.
- Coordinating closings
- Sequence your purchase close first, then use sale proceeds to pay off the bridge at the sale closing. Confirm payoff and escrow steps with your lender and closing attorney (Realtor.com bridge guide).
- Contingency planning
- Ask about extension terms, temporary rental options, or a fallback refinance if your sale runs long. Get the lender’s policies in writing.
Protect yourself and compare offers
- Get at least two written quotes. Ask for sample closing disclosures that show every fee and the APR. Bridge products vary widely and APR reveals the real cost (CNBC overview).
- Ask who holds the loan. Is it an in-house bank product, a brokered product, or a private lender? Clarify extension policies and payoff procedures in writing (American Express Credit Intel).
- Align your agent, lender, and closing attorney early. Good coordination reduces surprises on funding, possession dates, and payoffs.
Your next step
If you want to buy first, then sell on your terms, you have options. With a finance-forward plan, careful timing, and strong presentation, you can move confidently in South Charlotte’s market. For a tailored strategy, from Compass Concierge prep to bridge financing coordination, connect with Denise Gordon.
FAQs
What is a bridge loan and how fast can it fund in Charlotte?
- A bridge loan is short-term financing that taps your equity so you can buy before you sell. Some lenders can fund in under two weeks, though you still need full documentation and underwriting (CNBC overview).
Will I have two mortgage payments while I wait to sell?
- Often yes. Many products require you to cover your existing mortgage plus interest-only on the bridge until your sale closes, unless your lender structures it differently (CNBC overview).
Do Charlotte-area banks offer bridge financing?
- Yes. Banks, credit unions, and broker programs operate in the market. For example, regional banks publish consumer details about bridge options and timelines (FirstBank bridge loan page).
How long should my bridge term be in South Charlotte?
- Use your neighborhood’s days on market as a guide and add a buffer. In SouthPark, recent median days on market were roughly the high 40s, so many buyers plan for at least 3 to 6 months to be safe.
What North Carolina taxes and fees should I plan for at closing?
- Expect the state’s documentary stamp tax, generally $0.35 per $100 of price, plus standard closing costs. Property taxes continue on any home you still own during the bridge period (NC transfer tax overview; Mecklenburg tax context).
