Bridge (Short-Term) Financing

A bridge loan is a short-term loan that helps you purchase a new property while your existing property is still for sale.

Bridge financing is primarily used to cover the down payment and closing costs on a new property while you wait for your existing property to sell. It can also be used to manage overlapping mortgage payments or to handle unexpected costs that arise during the transition.

Short-term bridge financing for real estate purchases can be an ideal solution if:

• You’ve found a new property and want to secure it before your current proprty is sold.
• You need short-term funds to complete a property purchase while waiting for proceeds from an expected sale.
• You’re looking to avoid a rushed sale of your existing property, ensuring you get the best possible price.

Bridge loans are typically short-term, ranging from a few months to a year, depending on your needs and the market conditions.

Yes, bridge loans can be used even if you have an existing mortgage, as long as you have sufficient equity in your property.

Qualifying for bridge financing typically depends on the equity in your current property, your credit history, and your ability to repay the loan once your existing property sells. Private lenders offer more flexible terms, making bridge financing accessible even if traditional lenders present challenges.

Bridge loans may come with higher interest rates and fees, so it’s important to weigh these costs against the benefits.

While short-term bridge financing offers flexibility and convenience, it’s important to understand the associated risks:

• Higher Interest Rates: Short-term bridge loans typically come with higher interest rates compared to traditional mortgages, reflecting the temporary nature of the loan.
• Repayment Pressure: Bridge loans need to be repaid quickly, usually within a few months, making it crucial to have a clear exit strategy in place, such as a confirmed sale of your current property.

Yes, you can access bridge financing for commercial real estate purchases. Our lenders offer flexible bridge financing options to help you secure commercial properties while transitioning between transactions or awaiting long-term financing.

Yes, you can access bridge financing for farmland or an acreage. We have lenders who specialize in these types of properties and can provide tailored bridge financing solutions to help meet your needs during transitions.

No, short-term bridge financing is generally not available for mobile homes. Bridge loans are usually offered for traditional homes, condos, farms, commercial properties, and other permanent structures that have established resale markets.

The amount you can borrow with bridge financing depends on the equity in your current property and the lender’s criteria. Typically, you can borrow up to a certain percentage of your property's value, with private lenders offering flexible loan amounts based on your specific situation.

Bridge financing usually comes with short repayment terms, ranging from a few months to a year. The loan is typically repaid when your current property is sold. Flexible repayment options allow you to choose terms that align with your financial situation during the transition.