What is a bridge loan?

A bridge loan, also known as a swing loan, is a type of short-term loan available in Kansas that is used to bridge the gap between two different types of financing. This loan enables a borrower to meet their immediate financial needs while they wait to secure a more traditional mortgage loan. In terms of mortgage law, a bridge loan is typically offered by a bank or other financial institution to borrowers who need to purchase a larger home or refinance their current mortgage. These loans are often used for periods of six months or less and are usually secured by the new property being purchased. Borrowers should be aware that bridge loans typically come at a higher interest rate than traditional mortgages. Additionally, bridge loans may have different terms than a standard loan. For example, the loan may have a balloon payment due at the end of the loan term. In order to be eligible for a bridge loan, borrowers should have a steady source of income that will be able to cover the repayment of the loan. Creditworthiness will also play a role in the approval process. In conclusion, a bridge loan is a type of short-term loan available in Kansas that is typically used to bridge the gap between two different types of financing. These loans can be helpful to those who need to purchase a larger home or refinance their current mortgage, but borrowers should be aware of the higher interest rate and potentially different loan terms.

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What is a bridge loan?

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