Bridge Loans

A Bridge Loan is a short-term financing option designed to help homeowners or buyers “bridge” the gap between the sale of an existing property and the purchase of a new one. This loan is typically used when a borrower needs to secure funds quickly for a new home before selling their current property. Bridge loans are secured by the equity in the borrower’s current home and can provide immediate cash flow to facilitate a purchase. These loans are generally offered with higher interest rates and shorter repayment terms, usually ranging from six months to a year. While they offer flexibility and quick access to funds, they also carry the risk of higher costs and interest if the existing property doesn’t sell as quickly as expected. Bridge loans are ideal for individuals who need to move quickly in a competitive market but are not yet able to sell their current home.