Bridge Loan

Quick Summary

Short-term financing used between buying and selling homes.

ELI5 Explanation

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It helps you buy the new place before your old one sells.

Detailed Explanation

Bridge loans are often interest-only and rely on clear sale timelines. In private lending, bridge structures are used when banks cannot fund fast enough.

Example

A homeowner closes on a purchase in two weeks while sale proceeds arrive in 45 days.

Why It Matters

Timing gaps can be solved without missing a purchase.