"A bridge loan is a short-term financing option that helps homeowners "bridge" the gap between buying a new home and selling their existing property. Think of it as a financial stepping stone that provides temporary funding when you need to make a down payment on a new house before your current home sells. These loans are specifically designed for situations where timing doesn't quite line up."
"Why would I choose to take out a bridge loan? Bridge loans become particularly valuable in several scenarios. You might need one when: You've found the perfect home but haven't received an offer on your current property yet. You need to close quickly on a competitive property and can't wait for your existing home to sell. You're dealing with a hot housing market where sellers expect non-contingent offers, and a bridge loan can give you that competitive edge."
A bridge loan supplies temporary liquidity to homeowners who need to buy a new house before their existing property sells. The loans allow simultaneous buying and selling by funding down payments or closings during a timing gap. Typical uses include securing a competitive, non-contingent offer, closing quickly on a desired property, or moving forward when no offer has arrived on the current home. Bridge loans are intentionally short-term, generally lasting six months to one year, and are expected to be repaid once the existing home is sold. They are not intended as long-term financing.
Read at Redfin | Real Estate Tips for Home Buying, Selling & More
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