What Is Bridge Loan?
Bridge Loan: Short-term financing that covers a gap, such as buying a new property before selling another.
A bridge loan is short-term financing, typically 6 to 24 months, used until longer-term financing or a sale is in place.
Common uses
- Buying a new home before selling your current one, using equity in the current home
- Buying an investment property quickly, then refinancing into long-term debt
- Holding a commercial property during a lease-up or renovation
Typical terms
- Interest-only payments
- Higher rates and fees than long-term loans
- Repaid in full by the sale or refinance
Instead of a home sale contingency
A bridge loan can let you make an offer without a home sale contingency, which sellers often see as stronger.
Good to know
Unbeatable offers 6-, 12-, 18- and 24-month bridge loans on the Investor plan. Have a clear exit plan (the sale or refinance) before you borrow.