What is a residential bridge loan

A bridge loan is a short term financing optioloann for people who cannot immediately arrange a permanent financing. This helps them to meet their immediate money requirement and other existing financial obligations. These loans are meant for a short term and come with a high rate of interest

I prefer this definition which is in the glossary section of my site..

An interim loan typically used when the buyer is unable to sell his/her house but needs money to close the transaction on the house he/she is buying. The bridge loan is made on the buyer's current residence to finance the buyer's new residence. The loan is paid off when the buyer's current residence is sold.

Bridge loans are temporary loans that bridge the gap between the sales price of a new home and a home buyer's new mortgage, in the event the buyer's home has not yet sold. The bridge loan is secured to the buyer's existing home. The funds from the bridge loan are then used as a down payment on the move-up home.

hi leeelliot,

if your current home hasn't been sold in the originally anticipated time frame, a residential bridge loan is a great option. A residential bridge loan allows you to close on your new home without having to worry frantically about your current home.