Home | Ask Your Question | Mortgage Glossary
Find me a lender for:  
What is a Bridge Loan? By Michael Southard

A bridge loan, which can also be called a hard money loan, is a short-term loan that is used until a person or company can secure permanent financing. Basically, they "bridge" the gap between today's need for immediate cash to pay bills and the final closing of a pending investment deal or long-term financing package.

Bridge loans are usually offered for terms of 12-36 months and many can be refinanced into low cost, long-term financing through a lender. Bridge loans are not only for shorter terms, but are also needed to close quickly, so the borrower can take advantage of the opportunity to arrange for a longer term loan when they are ready. Speed is also an important factor in financing a bridge loan because the borrower may be trying to restructure debt or avoid claming bankruptcy.

Some borrowers look for a bridge loan to span the gap between the two transactions of buying a new home and selling the old one. However, most bridge loans are used in purchasing or refinancing commercial real estate. There are mortgage bridge loans and commercial bridge loans for various income properties including; apartments, industrial buildings, retail, hotels, healthcare, and mixed use.

For more information on a bridge loan, visit Security National Capital.

Michael Southard is the Vice President of Security National Capital.

See Also:

Save Time With a Bridge Loan
Why You Need a Bridge LoanYou have to move fast in todays housing market if you want to get into the home of your dreams. In cities such as Seattle or San Francisco its not uncommon for a buyer to receive half a dozen offers within the first day or two after putting the house on the market.Unless ... more...

Bridging Finance Basics
Bridging finance is a short-term loan that is used as a way to provide funding for the purchase of a new property while the borrower awaits the sale of an existing property. Unless all the stars are in perfect alignment, its tricky to coordinate the sale of one property and the purchase of another ... more...

Crossing the Gap from this Home to the Next: Bridge Loan
So youre thinking of getting into a bigger house. You call up the real estate agent and make an appointment to go see what the market has to offer. Then you find it, the perfect move-up home. Its everything youve ever wanted in a home unless your married, in which case its everything your wife ... more...

What is Bridging Finance?
Once you understand what the term, Bridging Finance means, its easy to understand how it got its name. The purpose of a bridging or bridge loan is to provide short term cash for a real estate transaction until permanent financing is secured. Bridge loans are commonly used to bridge the cash gap ... more...

More on bridge loan...

Search More Info On:

  • Bridge Loan
  • Loan Borrower
  • Permanent Loan
  • Loan Term
  • Closing Loan
  • Home Loan Terms

    Shop For Your Mortgage Now!
    Shop For Your Mortgage Now!

    You'll be re-directed to Top-Lenders.com

    Want to Know Your Rate?
    Get Customized Mortgage Quote Instantly

    ExplainingMortgages © 2005 - 2009