What is a bridge loan?

A bridge loan is a type of mortgage loan in California that provides short-term financing to help property owners in the transition from one home to another. It is usually used when a homeowner needs to transact two real estate deals simultaneously, such as when purchasing a new home before selling the old one. This loan helps bridge the gap during this transition period. Bridge loans are typically offered by conventional lenders, such as banks and credit unions, and may be either fixed-rate or adjustable-rate. Generally, they require some sort of collateral to back the loan, such as equity in your existing home, and come with higher interest rates than a traditional mortgage. It is important to note that bridge loans are more expensive than traditional mortgages and typically come with a shorter loan term, so it is important to understand the cost and risks before taking out a bridge loan. Additionally, because bridge loans are subject to mortgage law, you should be sure to consult with a qualified attorney to ensure that you are complying with all applicable legal requirements.

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What is a bridge loan?

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