 TITLE: What Is a Bridge Loan? CONTENT: Alternatives to a Bridge Loan\n-----------------------------\nIf you're on the fence about whether a bridge loan is right for you, there are a couple of alternatives to compare it with before you make a decision.\n### Home Equity Loan\nA home equity loan is also based on the equity you have in your home but has a few advantages over a bridge loan, including lower interest rates, lower loan costs and longer repayment terms.\n### Home Equity Line of Credit\nA home equity line of credit (HELOC) is similar to a home equity loan but provides a revolving line of credit instead of a lump-sum loan with installment payments. HELOCs typically charge variable interest rates that are even lower than what you can get with a home equity loan, which may be perfect if you're planning to pay back the debt quickly.\nJust keep in mind that some HELOCs charge a prepayment penalty if you pay off the balance early.\n### 80-10-10 Loan\nIf you have enough cash on hand to make a 10% down payment on your new home, this loan can help you get to an 80% loan-to-value ratio and avoid private mortgage insurance. With this loan, you get a first mortgage for 80% of the sales price of the home and a second loan for 10% of the sales price, leaving the final 10% coming from your cash reserves.\nIt's not ideal to get started in your new home with two loans, but it can be less expensive and less stressful than a short-term bridge loan.\n### Sell Your Home With a Contingency\nJust as buyers can make an offer with a contingency, sellers can do something similar. One option is the \"home of choice\" contingency, which means the sale of your current home to a buyer is contingent upon you finding a new home to purchase.\nThe second one is a \"rent back\" contingency, which allows the sale to go through with the provision that you can rent the home from the buyer for a set period while you complete the buying process on a new home.\nBoth of these contingencies can potentially help the transition process go more smoothly. But if it's a buyer's market, you may have a hard time convincing anyone to agree to them. END