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  2. Short-term financing
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    A bridge loan is a form of short-term financing that can help you purchase your new home when you don’t yet have access to the equity from your current home. The loan essentially allows you to tap into that equity to aid in the financing of the new home.
    A bridge loan is a form of short-term financing that gives individuals and businesses the flexibility to borrow money for up to a year. Also referred to as bridge financing, bridging loan, interim financing, gap financing and swing loans, bridge loans are secured by collateral such as the borrower’s home or other assets.
     
  3. People also ask
    What is a bridge loan in real estate?In real estate, a bridge loan helps homebuyers “bridge the gap” when transitioning from one home to another. Bridge loans, also known as gap financing and “swing loans,” provide short-term financing by tapping into your home’s existing equity. This gives you immediate access to as much as 80% of your home’s value.
    Can a bridge loan help you buy a home?Thankfully, a bridge loan can help ease your home buying journey. What is a bridge loan? A bridge loan is a short-term loan used to bridge the gap between buying a home and selling your previous one. Sometimes you want to buy before you sell, meaning you don’t have the profit from the sale to apply to your new home’s down payment.
    When should you use a bridge loan?For example, a bridge loan is commonly used for the period of time between buying a new house and selling your current home. When you don’t have the profits from the sale of your home yet to use toward the down payment on your new one, a bridge loan can assist you.
    How do bridge loans work?With a bridge loan, you may be able to finance these costs and pay back the loan once your home sells. Let’s take a look at how bridge loans work and if they’re the best choice for you and your situation. A bridge loan is a type of loan that is used as a short-term solution for individuals who are unable to secure more permanent financing.
     
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