Bridge Loans

Short-Term Financing Between Transactions

Bridge loans are short-term financing solutions designed to help cover a temporary gap between buying, selling, renovating, or transitioning from one property to another.

They can be useful when timing doesn’t line up perfectly, such as purchasing a new home before your current home sells or covering a short-term financing need while permanent financing is being arranged.

Bridge loan availability, loan terms, equity requirements, repayment structure, and qualification standards vary by lender and borrower scenario.

How Bridge Loans Work

Short-Term Financing Need

The lender reviews why temporary financing is needed, the property involved, your available equity, and the expected exit strategy.

Loan Approval & Closing

Once the borrower, property, and exit strategy are approved, the bridge loan closes and funds become available for the short-term financing need.

Funds Cover the Temporary Gap

Bridge financing can provide short-term funds while you wait for a property sale, permanent financing, or another planned source of repayment.

Repayment or Permanent Financing

The bridge loan is typically repaid when the planned exit occurs, such as the sale of a property, completion of financing, or another approved source of funds.

Bridge Loan Requirements to Expect

Equity & Property Review

Lenders typically evaluate the property, available equity, existing liens, and the overall financing structure to determine whether a bridge loan fits the scenario.

Clear Exit Strategy

The lender will typically want to understand how the bridge loan will be repaid, such as through a property sale, refinance, or other approved source of funds.

Income, Credit & Assets

Depending on the program, the lender may review your income, credit profile, liquid assets, reserves, and overall ability to carry the temporary financing.

Property & Loan Documentation

The lender may require property information, payoff details, purchase or sales contracts, valuation documents, and other records needed to confirm the bridge financing structure.