What is a bridge loan alternative and how does it work?

Bridge loan alternatives in 2026 are fintech programs that let you buy a new home before selling your current one — without a traditional bridge loan. They work differently: Buy-before-you-sell programs (Knock, Orchard, Homeward): the company advances the equity from your current home, you use it to make a non-contingent offer on the new home, then sell your old home and repay the advance. Traditional HELOC bridge: you open a HELOC on your current home, use it as a down payment on the new home, close the new home, then sell the old one and pay off the HELOC.

How much does Knock's bridge loan alternative cost in 2026?

Knock Mortgage's Buy Before You Sell program costs in 2026: Convenience fee: 2.25% of the new home purchase price, Mortgage origination fee: standard (0.5-1%), Interest on the bridge: variable rate (estimated 8-10%), Knock also covers 2 mortgage payments if your old home doesn't sell immediately. Example: $600K new home → 2.25% = $13,500 in fees upfront. Compare to traditional bridge loan fees of 2-4% + higher interest.

Is a HELOC cheaper than a buy-before-you-sell program?

HELOC vs buy-before-you-sell cost comparison: HELOC bridge: 7.5-9% APR on the funds used, closing costs $500-$2,000, no program fee. Buy-before-you-sell (Knock/Orchard): 2-2.5% program fee upfront PLUS interest on the advance. For a $200K advance used for 6 months: HELOC cost ≈ $9,000 (9% × 6 months × $200K). Knock cost ≈ $13,500 (2.25% fee) + $6,000 (interest) = $19,500. HELOC is cheaper if you qualify — but requires ~20-25% equity and 680+ credit score.

What if my current home doesn't sell quickly after using a bridge program?

Each program handles unsold homes differently: Knock: covers up to 6 months of double mortgage payments if home doesn't sell — major safety net, Orchard: their agent team lists your home; if not sold in 120 days, they make a guaranteed offer (at reduced price), Homeward: provides cash offer backup at a guaranteed price if home doesn't sell within the program window. The guaranteed backup offer (Orchard/Homeward) is the most powerful protection — but the guaranteed price is typically 80-90% of market value.

Best Bridge Loan Alternative Lenders 2026: Buy Before You Sell

Q: What credit score do I need for a bridge loan alternative in 2026?

Credit score requirements for buy-before-you-sell programs 2026: Knock: 620 minimum (flexible — they assess full financial picture), Orchard: 620 minimum, Homeward: 620 minimum, Traditional HELOC bridge: 680-700+ typically. Equity requirement: All programs require at least 20-25% equity in your current home. The equity is what they use as security for the advance.

🏆 Best Bridge Loan Alternatives 2026 — Ranked

🏆 #1 OVERALL — BEST SAFETY NET

Knock Buy Before You Sell

Max: Up to 90% of current home valueFee: 2.25% of new home priceCredit: 620+States: 75+ markets

Backup: Covers 6 months double payments

Best for: Most sellers — strongest safety net

🥈 GUARANTEED BACKUP OFFER

Orchard (Move First)

Max: Based on equity assessmentFee: 6% total (agent + program)Credit: 620+States: 12 states

Backup: Guaranteed cash offer at ~85% of value if unsold in 120 days

Best for: Sellers who want a guaranteed exit price

🥉 LOWEST FEE — $2M ADVANCE

Homeward

Max: Up to $2M current home equityFee: 1.9% of new home priceCredit: 620+States: TX, CO, FL, GA, AZ, CA + more

Backup: Guaranteed cash offer if unsold

Best for: Luxury market — highest loan advance amount

💰 CHEAPEST — IF YOU QUALIFY

HELOC Bridge (Traditional)

Max: Up to 85% CLTV on current homeFee: Closing costs $500-$2,000Credit: 680++States: Nationwide

Backup: None — you manage the sale yourself

Best for: Financially strong borrowers wanting lowest cost

⚠️ MOST EXPENSIVE — AVOID IF POSSIBLE

Traditional Bridge Loan

Max: Up to 80% of current home valueFee: 2-4% origination + 8-12% interest rateCredit: 680++States: Varies by lender

Backup: None

Best for: Short-term (under 6 months) when equity is high

💰 Real Cost Comparison — $600K New Home, $500K Current Home

	Knock	Orchard	HELOC Bridge	Traditional Bridge
New home price	$600,000	$600,000	$600,000	$600,000
Current home value	$500,000	$500,000	$500,000	$500,000
Advance/Bridge amount	$450,000 (90%)	$400,000 (assessed)	$200,000 (as DP)	$400,000
Program/origination fee	$13,500 (2.25%)	$36,000 (6%)	$1,500	$16,000 (4%)
Interest (6 months)	~$13,500	~$10,000	~$9,000 (9%)	~$24,000 (10%)
Total cost	~$27,000	~$46,000	~$10,500	~$40,000
VERDICT	✅ Best fintech	⚠️ Expensive	🏆 Cheapest overall	❌ Avoid

HELOC is cheapest ($10,500 total) IF you qualify. But requires 680+ credit and 20-25% equity. If you don't qualify or want a safety net, Knock at $27,000 is the best fintech option — especially with 6-month double payment coverage.

🏠 Stop Losing Homes to Non-Contingent Buyers

Get your equity advanced so your offer is as strong as a cash buyer's. Compare programs in 3 minutes.

Compare Buy-Before-Sell Programs →HELOC Bridge Quote

❓ Bridge Loan Alternative FAQ

What is a bridge loan alternative?

Programs like Knock, Orchard, and Homeward advance your current home's equity so you can buy the new home without a contingent offer. Alternatively, a HELOC on your current home serves as a bridge at lower cost if you qualify.

How much does Knock's program cost in 2026?

2.25% of the new home purchase price + interest on the advance (8-10%). On a $600K home, that's $13,500 in fees upfront. Includes 6-month double payment coverage — major safety net.

Is a HELOC cheaper than buy-before-you-sell programs?

Yes — HELOC costs ~$10,500 for a 6-month, $200K bridge vs $27,000 for Knock on the same scenario. HELOC wins on cost but requires 680+ credit and 20-25% equity. It also has no backup/safety net.

What credit score do I need?

Knock, Orchard, Homeward: 620 minimum. Traditional HELOC bridge: 680+. Traditional bridge loan: 680+. All require 20-25% equity in your current home.

What if my home doesn't sell after using a bridge program?

Knock covers up to 6 months of double payments. Orchard makes a guaranteed cash offer at ~85% of value if unsold in 120 days. Homeward provides a guaranteed offer backup. These protections are the key advantage over traditional bridge loans.

🏠 Your Dream Home Won't Wait — Neither Should You

Non-contingent offer. No risk of losing the new home. Compare buy-before-sell programs now.

Compare Bridge Alternatives →Compare All Lenders

Best Bridge Loan Alternatives
2026: Buy Before You Sell

🏆 Best Bridge Loan Alternatives 2026 — Ranked

Knock Buy Before You Sell

Orchard (Move First)

Homeward

HELOC Bridge (Traditional)

Traditional Bridge Loan

💰 Real Cost Comparison — $600K New Home, $500K Current Home

🏠 Stop Losing Homes to Non-Contingent Buyers

❓ Bridge Loan Alternative FAQ

🏠 Your Dream Home Won't Wait — Neither Should You

📚 Related Guides

Same-Day Pre-Approval →

HELOC No Appraisal →

Unison vs Hometap vs Point →

Meet David

EXPERTISE:

Best Bridge Loan Alternatives2026: Buy Before You Sell

🏆 Best Bridge Loan Alternatives 2026 — Ranked

Knock Buy Before You Sell

Orchard (Move First)

Homeward

HELOC Bridge (Traditional)

Traditional Bridge Loan

💰 Real Cost Comparison — $600K New Home, $500K Current Home

🏠 Stop Losing Homes to Non-Contingent Buyers

❓ Bridge Loan Alternative FAQ

🏠 Your Dream Home Won't Wait — Neither Should You

📚 Related Guides

Same-Day Pre-Approval →

HELOC No Appraisal →

Unison vs Hometap vs Point →

Meet David

EXPERTISE:

Best Bridge Loan Alternatives
2026: Buy Before You Sell