Mortgage Glossary
Bridge Financing
Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
Bridge financing is a short-term loan that lets a buyer purchase a new home before selling the current one, bridging the gap between the two transactions.
What Bridge Financing means
Bridge loans tap existing equity for a down payment on the next home, then get repaid when the old home sells. They carry higher rates and short terms. They help buyers avoid contingent offers in competitive markets.
Florida example
A move-up buyer in Sarasota used bridge financing against $150,000 of equity to buy a new home, repaying the bridge loan two months later when the old house closed.
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