Thinking about buying your next Ladue home before your current one sells? You are not alone. In a competitive, high‑price market, moving once and writing a strong, non‑contingent offer can save time and stress. This guide explains how bridge loans and HELOCs work in Ladue, what they cost, how to time your move, and the risks to plan for. Let’s dive in.
Why buy before you sell in Ladue
Ladue’s upper‑tier market often rewards clean, non‑contingent offers. Recent trackers show a high median price and quick sales. For example, the June 2025 Rocket market report for Ladue showed a median sold price near $1.3 million with many homes selling within about a month. Other national portals report different figures in some months, with typical values around the low to mid‑seven figures, which reflects different data windows and methods.
Carrying costs matter at these price points. The City of Ladue notes that St. Louis County assesses property values and multiple taxing districts apply, which can add up for larger homes. Review the city’s overview of taxes and tax rates and budget for the possibility of paying two sets of mortgage, taxes, insurance, and utilities if your sale takes longer than expected.
Option 1: Bridge loan basics
A bridge loan is short‑term financing that lets you use equity in your current home to buy the next one before you sell. It typically runs 3 to 12 months, often with interest‑only payments and a balloon payoff once your current home closes. Consumer guides explain common structures and tradeoffs for these loans; see this bridge loan overview for definitions and typical terms.
What to expect:
- Qualification: lenders usually want solid equity in your departing home, a review of credit and income, and a plan for your long‑term mortgage on the new home.
- Speed: some specialty lenders advertise quicker closings than a standard mortgage, sometimes in 10 to 21 days, depending on underwriting and appraisal timelines (example program features).
- Cost: rates and fees are usually higher than a conventional mortgage. Expect an origination or arrangement fee, appraisal, title, and closing costs.
Pros in Ladue:
- Strong, non‑contingent offer that can stand out.
- One move instead of two.
Cons to consider:
- Higher interest and fees for a short term.
- You may carry two homes if your sale runs long.
Option 2: HELOC as your down payment bridge
A home equity line of credit (HELOC) is a revolving line secured by your home that you draw on as needed. It is commonly variable rate and has a draw period followed by a repayment period. The CFPB’s guide explains how HELOCs work and what disclosures to expect; read the CFPB HELOC overview.
What to expect:
- Pricing: HELOC rates typically track the bank prime rate plus a margin. The Federal Reserve’s H.15 data recently showed prime around 7.25 percent in late 2025, and lenders price above or below that depending on your profile. See the Fed H.15 release for context.
- Limits: many local offers cap combined loan‑to‑value around 80 to 85 percent. St. Louis snapshots from market trackers, including HSH, show how margins and caps vary by lender.
- Costs: closing costs can be lower than a bridge loan, and many HELOCs allow interest‑only payments during the draw period.
Pros in Ladue:
- Flexible access to funds for your down payment and overlap costs.
- May be cheaper than a bridge loan if margins are favorable.
Cons to consider:
- Variable rate risk that can raise payments over time.
- Appraisal and combined LTV limits may reduce available funds.
Contract tools when you prefer not to finance
If you want to avoid interim financing, you can write a purchase offer that is contingent on the sale of your current home. In a tight market, sellers often accept this only with a kick‑out clause that lets them keep marketing and require you to remove the contingency within a set window. Missouri‑specific addenda exist for this scenario, such as the sale of other property addendum. Your agent and closing attorney can guide deadlines and structure.
Which option fits your move
- Choose a bridge loan if you need maximum offer strength and quick timing, and you have strong equity and reserves to handle short‑term carrying costs.
- Choose a HELOC if you want flexibility and potentially lower costs, you are comfortable with a variable rate, and your combined LTV leaves enough room to draw what you need.
- Choose a sale contingency if financing costs are your main concern and you have time to wait for the right seller and timeline.
Timeline: a Ladue‑ready plan
- 4 to 6 weeks before you offer: get preapproved for the new mortgage and request written quotes for a bridge loan or HELOC. Confirm available equity and estimated fees.
- Offer week: present your preapproval and any bridge or HELOC confirmation so the seller sees proof of funds. This strengthens a non‑contingent offer in competitive Ladue listings.
- Weeks 1 to 4: run inspections and underwriting in parallel. Bridge and HELOC timelines vary by lender and appraisal speed.
- Closing and sale: close on the new home, then sell the departing home. Pay off the bridge or HELOC from sale proceeds and coordinate lien releases with title.
Costs and risks to plan for
- Two‑home carrying costs: budget for a realistic time on market, even if many Ladue homes sell quickly. Include mortgages, insurance, utilities, and property taxes. Ladue’s tax structure means bills can be meaningful on higher‑value homes.
- Rate risk on HELOCs: variable rates can change. Know your draw and repayment terms and how caps work.
- Collateral risk: both bridge loans and HELOCs are secured by your home. Missed payments can have serious consequences. Review disclosures carefully.
Tax notes to discuss with your CPA
Current federal rules generally allow interest deductions on home equity borrowing only when funds are used to buy, build, or substantially improve the property that secures the loan, and only if you itemize. If you use a HELOC to help purchase a new home, deductibility depends on how the funds are structured and documented. See this summary of HELOC interest tax treatment, then confirm your specifics with a tax professional.
Your next step in Ladue
You deserve a plan that balances offer strength, cost, and timing. Thompson & Richardson will help you model both scenarios, set a pricing strategy for your Ladue sale, prepare the home for market with full‑service staging and vendor coordination, and line up the right financing path so you can move once and move well. When you are ready, connect with Thompson & Richardson Real Estate to map your buy‑before‑you‑sell game plan.
FAQs
What is the main difference between a bridge loan and a HELOC?
- A bridge loan is short‑term purchase financing secured by your current home with higher rates and fees, while a HELOC is a revolving, usually variable‑rate line you can draw for the down payment and overlap costs.
How fast can a bridge loan close for a Ladue purchase?
- Timelines vary by lender and appraisal, but some specialty programs advertise the ability to close in roughly 10 to 21 days when documentation is ready.
How much equity do I need to use a HELOC or bridge loan?
- Many lenders look for meaningful equity, and HELOCs commonly cap combined loan‑to‑value around 80 to 85 percent, subject to credit and underwriting.
Will a sale contingency hurt my offer in Ladue?
- In competitive listings, a sale contingency can be less attractive, which is why sellers often require a kick‑out clause that lets them keep marketing while you sell.
Are HELOC interest payments tax‑deductible if I use them to buy another home?
- They may be deductible only if the borrowing is used to buy, build, or substantially improve the property that secures the loan and you itemize, so consult a CPA about your exact structure and documentation.
