Bridge Loan
A type of short-term financing that is utilized to cover the financial gap between purchasing a new home and selling the previous one.
Loan Amount
Tied to Your Home's Appraised Value
Loan Term
6-12 Months
1-7 Days
Time to Fund
Interest Rate
6%-10%
What is a Bridge Loan?
At times, you may wish to purchase a new home before selling your current one, which means you may not have the proceeds from the sale to use as a down payment for the new home. This can be challenging if you were relying on those funds to purchase the new property. In such situations, you can consider applying for a bridge loan to assist with financing the new home purchase.
What are the Benefits?
Flexibility
A bridge loan offers borrowers access to short-term capital that can be used to meet immediate expense obligations, facilitate swift property purchases, complete necessary renovations, or help the borrower find new tenants for their building.
Non-recourse
In this type of financing, the lender can only recover the loan amount by selling the property itself. The borrower is not personally responsible for repaying the loan, and the lender cannot seek any compensation from them, even if the property's value is insufficient to cover the remaining loan balance. This feature makes it an appealing financing option in the current real estate market scenario.