Share This Page!

Friday, April 14, 2006

Bridge loan

An emergency loan for buyers who need money to close on a new home before they can sell their present home

Banks offer bridge loans to help buyers out of this sticky situation. Bridge loans are short-term, usually up to 1 year, with high interest rates that let you borrow against the old home.

Once the sale on the old home is finished, you can pay off the loan. It is difficult to qualify for bridge since you need enough income to cover the bridge loan and the mortgage payments on the old and new homes.

Bridge loans are also called interim financing, swing loans or turnarounds.
Related Posts Plugin for WordPress, Blogger...