A bridge loan is a short-term loan used to bridge the gap between buying a investment property and selling your previous one. Sometimes you want to buy before you sell, meaning you don't have the profit from the sale to apply to your new purchase.
How does a Bridge Loan Work?
Also known as interim financing, gap financing, or swing loans, bridge loans bridge the gap during times when financing is needed but not yet available. Both individuals and companies use bridge loans for business purposes. ACTION FUNDING INC does not offer bridge loans for consumer purposes.
Bridge loans can help real estate investors purchase a new property while they wait for their current property to sell. Borrowers use the equity in their current property for the down payment on the purchase of a new property while they wait for their current property to sell.