Bridge Funding

Bridge funding lets you bridge your equity from one property to the next through a temporary loan. Also known as a swing loan, bridge funding is a short-term stopgap loan that people generally get when they are selling one property and purchasing another. The loan lets them close on the purchase of the new property without having to liquidate other funds or get a second mortgage.

Purchasing a home or other property isn't an easy process. The paperwork alone is a nightmare, and the closing costs add up quickly--and heavily. For some people, especially those trying to sell a home at the same time, they are just spread too thin financially. This is the perfect situation for a bridge loan, or bridge funding.

Bridge Funding Connects You to Your New Home

A bridge loan is a little financial push that lets you tie up the loose ends on your new home while the old one still has the For Sale sign on it, or is tied up in escrow. In either case, bridge loans are temporary loans that help you cover your expenses while you are waiting for the money from the sale of your home to hit your bank account. Once it's there, you can pay back the temporary loan and get on with your life in your new home.

An important consideration for these types of loans is assets. If you don't have any assets--such as property or a home--to use as collateral, you may not get the loan. This type of funding requires that a person or business collateralize existing assets in order to get their financing.