Bridge Loan vs HELOC: Your Guide to a MiraBay Move-Up

Fallen in love with your next MiraBay home but need funds before your current place sells? You are not alone. Many Apollo Beach owners use either a bridge loan or a HELOC to make a confident move-up without missing the right property. In this guide, you will learn how each option works, what it costs in today’s market, and how local factors like flood zones and taxes affect your decision. Let’s dive in.

MiraBay market reality in 2025

MiraBay’s market has been slower to turn over, which matters if you might carry two homes. Recent neighborhood data shows a median sale price around $722,500 with a median days on market near 130 days, and MiraBay typically sits above broader Apollo Beach pricing. Use neighborhood comps, not citywide averages, when you estimate equity and a realistic sale timeline. Review current MiraBay neighborhood signals in the latest Redfin data and compare them to Apollo Beach city values in the Zillow snapshot.

What is a bridge loan?

A bridge loan is short-term financing that lets you buy your next home first and pay it off when your current home sells. Lenders focus on your equity, your exit plan, and your ability to carry payments until the sale closes. Pricing is often higher than standard mortgages, with interest frequently in the mid to high single digits and upfront fees that can add to total cost. For a clear overview of terms, fees, and use cases, see this bridge loan explainer.

What is a HELOC?

A HELOC is a revolving line of credit secured by your home that you can draw from during a multi‑year draw period. Rates are usually variable, and many lines allow interest‑only payments while you draw. You can use a HELOC to fund a down payment or serve as a flexible backstop during your move-up. Learn the basics in the CFPB’s HELOC guide, and check current average rate ranges in this HELOC rate summary.

Bridge vs. HELOC: which fits?

Choose a bridge loan if

• You need to buy first and want a strong offer without a sale contingency.
• You have substantial equity and a clear exit plan to repay from sale proceeds.
• You value speed and certainty over the lowest possible interest rate.

Choose a HELOC if

• You want to minimize short‑term cost and keep flexibility while you shop.
• You are comfortable with a variable rate and plan to repay quickly after your sale.
• You do not need to remove a sale contingency entirely, or you will use the line only if needed.

Costs in today’s rate climate

Mortgage rates in 2025 remain higher than the lows of recent years, which makes carry cost more meaningful. As of mid‑October 2025, the average 30‑year fixed rate was about 6.27 percent and the 15‑year near 5.5 percent, which influences how lenders price short‑term products and your overall monthly picture. See the recent national snapshot from AP News.

Here are two simple, illustrative comparisons using local‑style numbers:

• Example A, bridge loan: You tap $180,000 for a down payment on a $900,000 purchase. At 8.5 percent interest, held for 6 months, interest runs about $7,650, and a 2 percent origination fee adds about $3,600. Total estimated financing cost is roughly $11,250 before your sale, based on figures common in this bridge loan overview.
• Example B, HELOC: You draw the same $180,000 at a variable 7.8 percent for 6 months. Interest would be about $7,020, plus any opening or appraisal fees that some lenders charge. Note that some mortgage underwriters treat an open HELOC as a liability when qualifying you for the new loan, which can affect approval if not planned for. See underwriting treatment nuances in this lender guidance reference.

Local factors that affect the choice

• Flood zones and insurance: Many MiraBay properties lie near coastal flood areas. Verify parcel‑level FEMA designations and estimate flood insurance premiums, since carrying two homes with flood coverage can change your budget. Use Hillsborough County’s Find My Flood Zone tool before you choose a path.
• Property taxes and carry cost: Model your total monthly outlay, including taxes on both homes if you overlap for a few months. Hillsborough County’s property appraiser site explains millage and assessments on the Truth in Millage page.
• Tax deductibility: HELOC interest is generally deductible only if the funds are used to buy, build, or substantially improve the home that secures the loan. Always confirm your situation with a tax professional using IRS Publication 936.

How lenders qualify you

Lenders look at your combined loan‑to‑value, your debt‑to‑income ratio, and your reserves. With a HELOC, some underwriters assume the line is fully drawn or convert it to a qualifying payment when they evaluate your new mortgage, which can change your approval path. Bridge loans are often treated as a continuing obligation until your sale closes, so be ready to show a strong exit plan. For examples of how second‑liens may be treated in qualification, review this underwriting reference.

Your step‑by‑step plan

1. Estimate your sale price and timeline using MiraBay‑level comps and days on market. Start with the current MiraBay stats.
2. Confirm with your purchase lender how they treat open HELOCs or bridge loans during underwriting. Ask for a written scenario.
3. Verify flood zones for both properties and price insurance so you know your true carry cost using the county’s flood zone viewer.
4. Request written quotes for both options, including rate, closing fees, and any early payoff terms. Compare total cost over a realistic time frame.
5. Run a conservative plan where your sale takes 3 to 6 months longer than expected, and make sure your reserves cover two housing payments plus interest, taxes, and insurance.

Risks to plan around

• Bridge timing risk: If your home takes longer to sell, you may carry higher interest for more months and face liquidity strain. Build in a buffer and confirm exit timing with your agent and lender using realistic MiraBay DOM trends.
• HELOC rate risk: HELOC rates are variable, so payments can rise during the draw or repayment phase. Know your rate caps, and review payment calculations with your lender.
• Underwriting surprises: A HELOC or bridge loan can change your debt‑to‑income picture at the worst time. Ask your purchase lender to document exactly how they will treat any second lien during approval, and adjust strategy before you write an offer.

Ready to map the cleanest path to your next waterfront address in MiraBay? Let’s compare your numbers side by side, factor in flood and insurance nuances, and position your offer with confidence. Reach out to Jo‑Lee Mansfield at Costa Living to create a move‑up plan that fits your lifestyle and timeline.

FAQs

Will a HELOC hurt my chances of getting the new mortgage?

• It can. Many underwriters treat open HELOCs as a liability, sometimes assuming a full draw or using a qualifying payment, so confirm treatment with your purchase lender early using this underwriting reference.

How long do MiraBay homes typically take to sell?

• Recent neighborhood data shows a median days on market near 130 days, which is why you should build extra time into any bridge or HELOC plan and use current MiraBay stats to set expectations.

Which is cheaper overall, a bridge loan or a HELOC?

• It depends on carry time and pricing. Bridge loans often have higher annualized costs but are short term, while HELOCs can be cheaper for quick draws yet add variable‑rate risk and underwriting impacts. Compare written quotes and model a longer‑than‑expected sale timeline.

Are HELOC or bridge loan interest payments tax deductible?

• HELOC interest is usually deductible only if the funds improve the home that secures the loan, and bridge loan deductibility depends on how proceeds are used. Always review your situation with a tax professional using IRS Publication 936.

Do flood zones affect financing for MiraBay homes?

• Yes. Properties in Special Flood Hazard Areas usually require flood insurance for federally backed loans, and premiums can change your monthly carry cost. Check parcel‑level maps with the county’s Find My Flood Zone tool before you choose a financing path.