A bridge loan is a short-term loan intended to provide financing until a borrower secures permanent, long-term financing for their real estate investment. Bridge loans are used during the gap between purchasing a property and selling a previous one, providing the borrower with added flexibility. Bridge loans can also be referred to as bridge financing, gap financing, interim financing, or swing financing.
Continue reading for a breakdown of how bridge loans work including uses for bridge loans, interest rates, and more.
