What is Bridge Loan?
A bridge loan is short-term financing that lets a homeowner buy a new home before selling their current one, “bridging” the gap. It is repaid once the existing home sells. It adds flexibility but carries higher costs and the risk of owning two properties at once.
Example: A move-up buyer uses a bridge loan to make a non-contingent offer on a new home, then pays the bridge loan off when their old house closes a month later.