Bridge Loans for Short Term Real Estate Financing
At Crestico, we offer bridge loans, a short term financing solution that can help homeowners secure a new property before selling their current home. A bridge loan can provide access to funds when timing between buying and selling does not line up
What Is a Bridge Loan?
A bridge loan is short term real estate financing designed to cover the gap between buying a new property and receiving funds from the sale of an existing property. It can help qualified homeowners access equity from their current property to support the purchase of their next home.
Bridge loans are generally secured by real estate and are designed for temporary financing. Loan amount, repayment period, costs, and eligibility depend on the lender and the borrower’s financial situation.
When a Bridge Loan May Make Sense
Bridge financing may be useful when you want to purchase a new property before your current home has sold. It can help address timing issues in competitive real estate transactions and may provide greater flexibility when available home equity can support the financing.
Because bridge loans are temporary, borrowers should understand the interest rate, fees, repayment requirements, property values, and expected timeline for selling the existing property before moving forward.
Step 1
Check Eligibility
Step 2
Payment Option
Step 3
Get Approved
Step 4
Close the Loan
Step 5
Repayment & Loan Terms
How Bridge Loans Work
Bridge loans come in a few different structures, and the specifics depend on the lender. The two most common options include:
Frequently Asked Questions
What is a Bridge Loan and How Does It Work?
A bridge loan is short term financing that helps cover the financial gap between purchasing a new property and selling an existing property. The loan is generally secured by real estate and is repaid according to the lender’s terms.
What Are the Main Types of Bridge Loans?
Bridge financing can generally be structured by combining existing and new financing or by keeping the current mortgage while obtaining additional financing against available equity. The structure depends on the lender and the borrower’s circumstances.
How Long Does a Bridge Loan Last?
Bridge loans are designed for temporary use and may have terms lasting several months or up to about one year. The exact repayment period depends on the lender, loan program, and transaction.
Do I Need Equity in My Current Home?
Equity in the existing property can be an important factor because bridge financing is commonly secured by real estate. The amount of available equity and the property value can affect eligibility and the amount that may be available.
Can a Bridge Loan Help Me Buy Before I Sell?
Yes. A primary purpose of bridge financing is to help qualified borrowers purchase another property before the sale of their current property is completed. This can help when the timing of the purchase and sale does not align.