Bridge Loan or Home Equity Line?
Program and regulatory figures verified September 25, 2026. Details change; confirm your scenario with us.
These two reach the same equity and behave differently under pressure. Timing decides it, and in some states the constitution does.
The structural difference
A home equity line is revolving credit secured by your home, generally with a draw period, designed to sit there and be used over years. A bridge loan is designed to be repaid once, from a specific event, soon: the sale of the departing home.
A HELOC lender is underwriting a long relationship with your current property; a bridge lender is underwriting a transition.
Timing usually 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. If a HELOC is your plan, open it early. If you are already mid-move, a bridge or one of the other structures is more realistic.
Where the state removes the choice
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 route.
Massachusetts has no equivalent constitutional restriction, so both products are available here and the ceiling comes from investor guidelines.
Neither one touches the Massachusetts tax question
Worth saying plainly, because borrowing feels like it should matter and it does not. The surtax question turns on the capital gain realised when the home sells, not on what is secured against it. mass.gov puts the 2026 threshold at income exceeding $1,107,750.
The only structure that changes that picture is not selling at all. See the rental conversion page and the surtax 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 Massachusetts | Yes | Yes, no state CLTV cap |
| Available in Texas | Subject to the 80% homestead cap | Subordinate lines prohibited |
| Changes the surtax picture | No | No |
The full set of options is on the structures page, and the basics 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 more realistic.
Can I get a HELOC on my Massachusetts home to buy the next one?
Yes. Massachusetts has no constitutional cap on homestead liens of the kind Texas imposes, so both a bridge loan and an equity line are available subject to investor guidelines.
Does borrowing against my Massachusetts home change the surtax question?
No. The surtax question turns on the capital gain realised when the home sells, not on what is secured against it. The only structure that keeps the gain out of the current tax year is not selling.
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. The Massachusetts surtax threshold is set by the Commonwealth and indexed annually, and whether a home sale reaches it depends entirely on your facts; your CPA, your closing attorney, and your real estate agent each handle their own part. Loans are subject to borrower and property qualification.