What does Bridge Loan mean?
A Bridge Loan is a short-term loan that is used to bridge the gap between the purchase of a new property and the sale of an existing property. This loan is typically secured by the existing property and is used to provide the funds needed to make a down payment on the new property. A bridge loan is typically used when a homeowner needs to move before their existing home is sold and the proceeds from the sale can be used to purchase the new home. The bridge loan is usually paid off with the proceeds from the sale of the existing home.
Related Terms
Prepaid Expenses
Contingency
Potential Rental Income
Construction Budget
Shared-Equity Transaction
Waiver of Subrogation (In a Lease)
Property disclosure
Project Budget
Junior Mortgage
Metes and Bounds
Credit
Title Risk
Cluster Development
Fully Amortized Adjustable-Rate Mortgage ARM
Cash Flow
Conditional Commitment
Days On The Market
Bargain Sale