What Is a Bridge Loan?
Disclaimer: This website provides general mortgage and financial information for educational purposes only. It does not constitute financial, legal, or mortgage advice. Housentia is not a licensed mortgage broker, lender, or loan originator.
This content is provided for general educational purposes only and does not constitute financial, legal, or mortgage advice.
Introduction
A bridge loan is short-term financing that helps you buy a new home before selling your current one. It bridges the gap between the two transactions. See Steps to Buy a House with a Mortgage, What Is Mortgage Equity, and Refinance.
Frequently Asked Questions
- What is a bridge loan?
- A bridge loan is short-term financing that helps you buy a new home before selling your current one. You use the proceeds to make a down payment or cover the purchase, then pay it off when you sell.
- When is a bridge loan used?
- When you need to buy a new home before your current home sells. It bridges the gap between the two transactions.
- What are the terms?
- Bridge loans are typically 6–12 months. Rates are often higher than traditional mortgages. You may need to qualify for both the bridge and the new mortgage.
- What are the risks?
- If your home does not sell as expected, you may face two mortgage payments. Bridge loans can be expensive and are not available from all lenders.
Educational Disclaimer
This content is provided for general educational purposes only and does not constitute financial, legal, or mortgage advice.
Housentia is not a lender, mortgage broker, or loan originator.
Bridge loan availability varies by lender.