BRIDGE LOAN RETOTD Episode 00115
Podcast: Play in new window | Download | Embed
Subscribe: Android |
A type of short-term, interim financing used to bridge the time gap between the end of one loan and the beginning of another, as between a construction loan and permanent financing. Not used much anymore, bridge loans are obtained by those who have not yet sold their previous property, but must close on a purchase property. The bridge loan becomes the source of their funds for the down payment. One reason for their fall from favor is that there are more and more second mortgage lenders now that will lend at a high loan to value. In addition, sellers often prefer to accept offers from buyers who have already sold their property.