Rocket Mortgage Puts Purchasing Power in the Hands of Clients with Bridge Loans - Enabling Homeowners to Buy Now, Sell Later

Rhea-AI Summary

Rocket Mortgage (NYSE:RKT), the nation's largest mortgage lender, has launched bridge loans to help homeowners purchase new homes before selling their current properties. This strategic solution enables homeowners to tap into their average $181,000 in equity to compete with cash buyers in today's competitive housing market.

The bridge loan offers up to six months to sell existing homes with interest-only payments. Eligibility requires home listing or contract with agent, plus an associated Rocket Mortgage purchase loan. The program aims to eliminate contingent offer challenges and provide flexibility in highly competitive markets, where cities like San Jose see 67.1% of homes selling above asking price.

Positive

• New bridge loan product enables homeowners to access average equity of $181,000
• Allows homeowners to compete with cash buyers in competitive markets
• Provides up to 6 months flexibility for selling existing home
• Eliminates need for contingent offers, making bids more competitive
• Reduces stress of simultaneous buying and selling
• Helps avoid costs of temporary housing and double moves

Negative

• Bridge loan requires interest-only payments during transition period
• Product limited to clients using Rocket Mortgage for purchase loan
• Requires home to be listed or under contract with agent to qualify

Insights

Financial Services Analyst

Rocket Mortgage's new bridge loan product strategically targets equity-rich homeowners, potentially boosting purchase mortgage volume amid market constraints.

Rocket Mortgage's launch of bridge loans represents a calculated strategic move to stimulate purchase mortgage activity in a challenging market environment. With the average homeowner sitting on approximately $181,000 in untapped equity, this product specifically targets a high-value segment with substantial financial resources but limited liquidity flexibility.

The timing is particularly strategic given current market dynamics. Persistent inventory constraints and elevated home prices have created significant hurdles for move-up buyers who need to sell before purchasing. By allowing homeowners to access equity before selling, Rocket removes a critical financing gap that has been preventing transactions from occurring.

From a competitive positioning standpoint, this product addresses a significant pain point not universally served by all mortgage lenders. The requirement that customers must use Rocket for their purchase mortgage creates an effective customer acquisition and retention mechanism, potentially boosting purchase loan volumes – the holy grail in mortgage lending, especially when refinance activity remains subdued due to higher interest rates.

The six-month interest-only period represents a calculated risk assessment by Rocket, reflecting confidence in reasonable home selling timeframes while balancing customer affordability. The qualification requirements – having the home listed or under contract with a listing agent – creates a natural risk mitigation mechanism against speculation.

This product launch aligns with Rocket's broader strategy of removing friction from homeownership transitions, similar to their earlier RocketRentRewards program. Both initiatives demonstrate the company's focus on creating mortgage solutions that address specific market barriers rather than simply competing on rate, which is critical for maintaining margins in a competitive lending environment.

Homeowners have on average, $181,000 in equity. This new product helps them access it before transitioning to a new home

DETROIT, June 24, 2025 /PRNewswire/ -- Rocket Mortgage, the nation's largest mortgage lender and a part of Rocket Companies (NYSE: RKT), today announced the launch of bridge loans – a strategic solution designed to help buyers wrestle back control in today's competitive housing market. This new product allows current homeowners to use equity to compete shoulder-to-shoulder with cash buyers – allowing them to purchase their next primary residence before selling their current one. This provides both financial flexibility and eliminates the uncertainty and reluctance of home sellers that often comes with so-called 'contingent' offers.

With high home prices and tight housing inventory, many buyers struggle to compete without first selling – leading to delays and missed opportunities. Yet the average homeowner has $181,000 in untapped equity, a powerful resource to make a strong offer.¹  Rocket Mortgage's bridge loan unlocks that equity upfront, providing funds for a down payment or closing costs in the interim.

"Buying and selling a home at the same time can be one of the most stressful parts of the journey," said Bill Banfield, Chief Business Officer and Economist at Rocket. "Rocket Mortgage's new bridge loan alleviates this by helping people purchase on their terms – not the market's. It removes one of the biggest barriers to moving: immediate access to the equity in their current property. With this new flexibility, buyers can quickly and confidently secure their next home."

Many areas of the country remain highly competitive for buyers. In San Jose, for example, 67.1% of homes sold above asking this February. Oakland, San Francisco and Newark were not far behind with more than half of all properties selling for more than the list price.² 

Even in calmer markets, a bridge loan offers key advantages. Buyers avoid the hassle of double moves and temporary housing, while taking the time to secure the best offer on their existing property.

Rocket Mortgage's bridge loan gives clients up to six months to sell their home, with interest-only payments throughout that period. To qualify, clients must have their home listed, be under contract with a listing agent or have a guaranteed buyout agreement in place. The client must also have an associated Rocket Mortgage purchase loan to be eligible.

The bridge loan is part of Rocket's broader mission to Help Everyone Home by removing financial barriers and reimagining what's possible in the homeownership process. Earlier this year, Rocket Mortgage introduced RocketRentRewards, the first program to turn rent into real purchasing power. Qualified first-time buyers can earn up to $5,000 in lender credits, or 10% of their past year's rent, toward closing costs.

Visit www.rocketmortgage.com to learn more about bridge loans with Rocket Mortgage.

About Rocket Mortgage 

Detroit-based Rocket Mortgage (NMLS #3030) is the largest mortgage lender and is a part of Rocket Companies (NYSE: RKT).

The lender enables the American Dream of homeownership and financial freedom through its obsession with an industry-leading, digital-driven client experience. In late 2015, it introduced the first fully digital, completely online mortgage experience. Since its founding in 1985, Rocket Mortgage has closed more than $1.8 trillion of mortgage volume across all 50 states.

J.D. Power has ranked Rocket Mortgage #1 in client satisfaction for both primary mortgage origination and servicing 22 times – the most of any mortgage lender. Rocket Companies, Rocket Mortgage's parent company, has placed in the top third of Fortune's list of the "100 Best Companies to Work For" the list for 22 consecutive years. 

For more information and company news visit RocketCompanies.com/PressRoom. 

¹ Rocket Mortgage: 2024
² Redfin: Big City Comeback: Homebuyer Competition Is Rising Fastest in the Bay Area, New York

 

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SOURCE Rocket Mortgage

FAQ

What is Rocket Mortgage's new bridge loan program and how does it work?

Rocket Mortgage's bridge loan allows homeowners to use their current home equity to buy a new home before selling their existing one. The program offers up to 6 months with interest-only payments to sell the current home.

How much equity can homeowners access through RKT's bridge loan program?

The average homeowner has access to $181,000 in equity through the bridge loan program, which can be used for down payment or closing costs on their next home purchase.

What are the eligibility requirements for Rocket Mortgage's bridge loan?

To qualify, homeowners must have their current home listed for sale or under contract with a listing agent, and must use Rocket Mortgage for their new home purchase loan.

How competitive is the housing market where RKT's bridge loans are being offered?

The market is highly competitive, with cities like San Jose seeing 67.1% of homes selling above asking price, and similar trends in Oakland, San Francisco, and Newark with over 50% selling above list price.

What advantages does RKT's bridge loan offer compared to traditional home buying?

The bridge loan allows buyers to make non-contingent offers, compete with cash buyers, avoid temporary housing costs, and take time to secure the best offer on their existing property.