Bridge Loan Basics
A Bridge Loan is a short term financing solution designed to cover immediate funding gaps in real estate transactions Homebuyers and investors often use bridge loans to secure a new property while waiting for the sale of their existing property This type of loan provides temporary capital allowing individuals to act quickly in competitive markets

How Bridge Loans Work
Bridge loans are typically secured by the existing property or the property being purchased Lenders offer these loans for a period ranging from a few months to a year Borrowers benefit from faster access to funds compared to traditional mortgages making it possible to seize time sensitive opportunities without waiting for long approval processes

Benefits and Considerations
Bridge loans offer flexibility and speed providing a financial cushion in uncertain situations They allow homeowners to move forward with new investments without being tied down by slow financing However interest rates on bridge loans are usually higher and careful planning is essential to ensure repayment within the short term