When it comes to home financing, a diverse array of loan types awaits homeowners. Among them is the bridge loan, a distinctive option with its own set of advantages and drawbacks.
Let's discuss the nuances of bridge loans, find out how they work, their benefits and disadvantages, and some alternatives to bridge loans.
What is a Bridge Loan?
A bridge loan is a short-term solution, often used to bridge the financial gap between purchasing a new home and selling your current one. This type of loan comes into play when the need to buy arises before the sale of your old property is finalized.
Navigating the Mechanics of Bridge Loans
Due to the higher risk involved, bridge loans come with more stringent requirements than other mortgage…