BRIDGE FINANCING
WHAT IS BRIDGE FINANCING?
Bridge financing or bridge loan is a short term financing option for homeowners to help them “bridge” the gap between selling your current home and purchasing your new property. This allows you to use the equity in your current home to make the down payment on your next home, while you wait for your existing home to sell. If you find yourself in a situation where the closing date for the purchase of your new property is sooner than the closing date of your current home, bridge financing may be the option for you.
Bride loans are temporary solution, typically lasting about 6 months in length, but can be used for as little as 1 day and as long as 12 months in certain circumstances. In order to be considered eligible for a bridge loan a firm sale agreement must be in place on your existing home.
