Bridge Loans
Bridge Loan Program Bridge loans are short-term financing solutions designed to “bridge the gap” between the purchase of a new property and the sale or refinance of an existing one. These loans provide quick access to capital, allowing borrowers to move forward with time-sensitive opportunities without waiting for long-term financing. Bridge loans are commonly used in real estate transactions where speed and flexibility are critical.
Who Are Bridge Loans For?
Bridge loans may be a strong option if you: Need to purchase a new property before selling your current one. Are an investor pursuing a time-sensitive deal. Need short-term capital while preparing for a refinance. Are transitioning between properties. Require fast funding with flexible qualification guidelines.
Key Highlights
Common Uses Purchase-before-sale transactions. Temporary financing for renovations. Short-term investment strategies. Commercial and residential acquisitions. Repositioning properties prior to long-term financing.
Key Features
Short-term loan terms (typically 6–24 months). Fast approvals and closings. Interest-only payment options (program dependent). Flexible underwriting focused on equity and exit strategy. Available for residential and commercial properties.
What to Expect
Bridge loans typically: Have higher interest rates than traditional mortgages. Require sufficient equity or strong exit strategy. Involve appraisal or valuation. Are designed as temporary financing solutions. Bridge loans are best used with a clear exit plan, such as a sale or refinance.