Bridge Loans, HELOCs, and Other Ways to Access Equity for Your Next Home

If you own a home in Oregon and you're ready to move up, you're probably sitting on more equity than you realize — and figuring out how to use that equity is where people get stuck. There are real tools designed for exactly this situation. A bridge loan, a HELOC, and a home equity loan each solve a version of the same problem. They work very differently, though, and picking the wrong one can complicate your move.

Here's what each option actually does, when each one makes sense, and what the numbers look like in Oregon right now.

 

The Core Problem Move-Up Buyers Face

The classic move-up scenario: you want to buy your next home, but most of your down payment is locked inside the equity of the home you currently own. You can't access that equity until you sell. But you don't want to sell until you've found somewhere to go. And you can't make a strong offer on a new home while you're still contingent on selling the current one.

This is one of the most common bottlenecks in Oregon real estate right now — especially in areas where inventory moves and well-priced homes don't wait around. A bridge loan, HELOC, or home equity loan each approach it differently.

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Bridge Loans: Buy Before You Sell

A bridge loan is a short-term loan secured by the equity in your current home. The lender appraises your departing property, calculates how much equity you have after your existing mortgage, and lends against it — typically up to 80% of the appraised value minus what you owe. You use those funds for a down payment on your next home, then repay the bridge when your current home sells.

The big advantage: you can make a clean, non-contingent offer. In a competitive market, that's real leverage. A contingent offer asks a seller to absorb uncertainty. A non-contingent offer doesn't.

Bridge loans are interest-only during the loan term, which runs anywhere from 1 to 24 months. That keeps your monthly payment manageable during the overlap window when you may temporarily be carrying your existing mortgage, the bridge payment, and your new mortgage simultaneously. Closings happen fast — often in 10 to 14 days.

The cost: Bridge loans carry a premium over conventional mortgage rates — typically 1 to 3 percentage points above a standard 30-year fixed. With Oregon 30-year rates around 6.25–6.37% (per RMLS Portland Metro March 2026 data), you're looking at bridge rates roughly in the 7.5–9.5% range depending on lender and your profile. Closing costs typically run 1.5% to 3% of the loan amount.

A concrete example: say your Canby home is worth $650,000 and you owe $200,000. At 80% LTV, a bridge lender might extend up to $320,000 ($650K × 80% = $520K, minus the $200K owed). That's substantial buying power without waiting on the sale to close.

To qualify, you'll generally need a credit score of at least 620 (680+ for best pricing), 20–30% equity in your departing home after the existing balance, income sufficient to carry all three payments simultaneously, and a documented plan to list within 30 to 60 days. Bridge loans aren't cheap, but for move-up buyers competing for homes where timing is everything, the ability to come in without a contingency is often worth the short-term cost.

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HELOCs: Flexible Access, More Lead Time Required

A home equity line of credit is a revolving credit line secured by your equity. The lender approves you for a maximum amount — most allow up to 80–95% combined loan-to-value — and you draw from it as needed during a draw period (typically 10 years). You only pay interest on what you've actually used.

For a move-up buyer, a HELOC can fund a down payment on a new home before your current one sells. The key difference from a bridge loan is structure and timing: HELOCs require more lead time to set up (2 to 4 weeks typically), aren't purpose-built for the buy-before-you-sell scenario, and are best opened before your current home goes active on the market. Many lenders freeze draws on an existing HELOC once a property is listed for sale.

Oregon rates in May 2026: Bankrate's national survey puts the average HELOC rate at 7.26% as of early May. Rivermark Credit Union, which operates in Oregon, shows HELOC APRs starting at 6.99% (March 2026 published rates). Oregon-focused credit unions Maps Credit Union and Oregon Community Credit Union are ranging from 6.50–7.50% depending on credit and LTV. HELOC rates are variable — they float with the prime rate — so your rate can change over the life of the line.

Where HELOCs work well: when you have time before you need to buy, want flexibility to draw only what you need, or are using equity for home prep before listing. Closing costs are also lower than a bridge loan — typically $300–$700 at Oregon credit unions versus 1.5 to 3% on a bridge — which matters if your transition timeline is uncertain.

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Home Equity Loans: Fixed Rate, Lump Sum

A home equity loan is the less-flexible but more predictable cousin of the HELOC. You receive a fixed lump sum at a fixed interest rate, repaid over a set term (typically 5 to 20 years). Rivermark Credit Union's Oregon home equity loan rates as of March 2026 ranged from 6.99–13.49% depending on term and borrower profile.

For move-up buyers, the home equity loan is less commonly used than either a bridge or HELOC, simply because you have to know your exact borrowing amount upfront. It makes sense if you need a specific sum, want rate certainty, and your timeline gives you enough runway to repay it cleanly. It doesn't give you the revolving flexibility of a HELOC or the purpose-built buy-before-you-sell structure of a bridge loan.

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Oregon Equity Position: What You're Working With

Oregon homeowners are generally in a solid position to use these tools. According to available data, Oregon homeowners hold roughly 58% of their home's value in equity — with average equity around $245,000. Oregon home values have appreciated meaningfully over the past several years; Canby's median sale price sat at $650,000 as of early 2026 (Redfin), and sellers who bought even a few years ago often have substantial equity built up.

That equity is real leverage. The practical question isn't whether you have it — it's which tool converts it into buying power at the right moment.

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Which Option Fits Your Situation?

A bridge loan is likely the right tool if you need to move quickly, you've found a home you want to buy now, and you want to compete without a contingency. The higher short-term rate is a cost you can plan around — especially since you're only in the loan for 60 to 120 days in most cases.

A HELOC is likely the right tool if you have time before you need to buy, you want flexibility in how much you access, or you're using equity for home preparation before listing. Start early — before you go active — because your window closes once you're on the market.

A home equity loan makes sense if you know the exact amount you need, want a fixed rate, and have enough runway that the repayment timeline isn't compressed.

One practical note: talking to a lender before you've committed to a path gives you a clearer picture of what you actually qualify for and what each option will cost given your specific equity, credit profile, and income. The math looks different for a $400,000 home with a small mortgage than for a $650,000 home with a $350,000 balance — and the right tool depends on those numbers.

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Jennifer Schurter serves buyers, sellers, and investors throughout South Clackamas County and the North Willamette Valley — including Canby, Oregon City, Wilsonville, Aurora, Hubbard, Molalla, Woodburn, Newberg, Sherwood, Tualatin, West Linn, Lake Oswego, and the greater Portland metro south. Her goal is simple: to be the most knowledgeable, most responsive, and most genuinely helpful real estate agent in the area — every single time. Jennifer is a licensed Oregon real estate broker with Real Broker LLC.

Have questions or want to get started? Connect with Jennifer here: https://jenniferschurterhomes.com/connect-with-jennifer — She'd love to hear from you.