QWhat Is A Bridge Loan?
ABridge loans (or "swing loans") are secured by using the borrower's present home--usually for sale--as collateral. These loans bridge the gap between a moving into a new home and selling the old home. By using funds from a bridge loan, the borrower can close on a new house before their existing house sells. A borrower can also gain funds to build a new home with a bridge loan. You can secure a bridge loan if you can prove to a lender you will maintain the following payments: 1. Your current home mortgage 2. Your new home mortgage 3. The bridge loan payments 4. Other obligations (bills, loans, etc.)