Bridge Financing

Bridge financing is a temporary loan designed to assist homeowners during the transitional period of buying a new property before selling their existing one. This type of financing provides the necessary funds to cover the down payment or other costs associated with the new purchase while waiting for the sale proceeds of the current home. Bridge loans are typically short-term, lasting a few months to a year, and often come with higher interest rates than traditional loans. They are ideal for situations where timing is critical, ensuring that homeowners can secure their desired property without delays. However, careful planning is essential to ensure repayment once the current home is sold.