What is a bridge loan?
A bridge loan is a short term, limited underwrite loan that bridges the gap between buying a house and qualify & closing on a permanent mortgage. They have fewer underwriting requirements and are faster or more “streamlined” than a standard bank loan.
When to use a bridge loan?
You found a house you want to buy, but haven’t sold your old house yet.
Last-minute loan decline from a bank and you have no time to resubmit and get approved from another lender.
No cash for a down payment but you have lots of equity in your current house. We may be able to use that equity for a “no cash down” scenario.