A bridge loan is so-called because it helps homeowners or real estate enthusiasts fill the financing gap between buying a new property while they are still selling another property.
It is sometimes also called a bridge mortgage or a bridging loan.
When you’ve found the perfect home or are on the lookout for the right bargain property to flip, it can be hard to secure funding if you haven’t already sold your previous home.
While you can put in an offer on a home on the contingency that your current property will sell, this could jeopardize your ability to secure the home you’re dreaming about
A bridge loan can help you negotiate your contract and ensure that your offer is considered.
A bridge loan can help you cover the down payment or closing costs on a new home.
This short-term loan can then be paid off when your current home sells. Even if you have some money to put towards a down payment on a new home, a bridge loan can help you put down more money so you can avoid mortgage insurance or receive better terms.