Bridge
Loan
A
bridge
loan is a short-term loan, usually a second
mortgage, run for 6 month but may be taken taken out for a period
of 2 weeks to 3 years. The borrower's current home (which is usually "for
sale") is used as collateral. The bridge loan is used to close on
the new home before the current home is sold.
Uses
for bridge loans include providing down
payment for real estate purchases or retrieving real estate from foreclosure.
Also known as a swing loan.
Also:
A construction
loan made during completion of a building
or a project. A permanent
loan usually replaces this loan after completion.
Interim
loans are used to bridge the gap between the construction loan and
the permanent loan (hence bridge
loans) lasting form one to three years.
New
Home Construction
Bridge Loan related topics: |
