Mortgage Bridge Loan
A mortgage bridge loan is a type of short-term loan that is used to bridge the gap between the purchase of a new property and the sale of an existing property. This type of loan is often used by homeowners who are looking to buy a new home before they have sold their current home.
To qualify for a mortgage bridge loan, borrowers must have a contract to sell their current home and must be able to demonstrate that they have the financial means to repay the loan. Borrowers will also need to provide collateral, such as their current home or other assets, to secure the loan.
One advantage of a mortgage bridge loan is that it allows homeowners to purchase a new home before they have sold their current home, which can be especially helpful in a competitive real estate market. It can also provide a financial cushion for homeowners who need to make a down payment on a new home before they have received the proceeds from the sale of their current home.