Posted On
Mar 05, 2024
A bridge loan is a short-term loan to bridge the gap between the purchase of a new home and the sale of an existing one. It provides financing to cover the down payment and closing costs of a new home before the borrowers current home sells.
Bridge loans usually range from a few weeks to a few months, and typically have higher interest rates than traditional mortgages. Typically, there must be a firm sale agreement in place for both properties.