Bridge Financing
Bridge financing is a temporary loan used when a new home is purchased before the sale of an existing property is completed. The loan is repaid once the original home sale closes.
Bridge loans are usually interest-only and intended for short-term use.
Why this matters:
Bridge financing can keep a purchase moving forward, but it depends on accurate sale timing. Delays or failed sales can increase costs and financial risk.
Related Mortgage Terms
Often confused with:
Refinancing — Refinancing changes your existing mortgage; bridge financing is temporary gap funding.
Closely related
Mortgage — Often paired with the new purchase mortgage.
Equity — Bridge loans are often secured by existing property equity.
Next step
Refinancing — Learn the difference between temporary bridge funding and longer-term borrowing changes.