bridge loan
Temporary gap funding
A bridge loan is short-term financing that covers the gap between two transactions—typically when buying a new home before selling the current one.
The loan "bridges" the period when you need funds but haven't yet received expected money: We took out a bridge loan to make the down payment while waiting for our old house to close.
Bridge loans carry higher interest rates and are meant to be repaid quickly, usually within a year.
- collateralSecurity for debt
- hard moneyMetallic legal tender
- stopgapTemporary substitute measure
- interimProvisional in-between phase
- short-termOf limited duration
finance · gap · balloon payment · lifeline · temporary · tight spot · credit · emergency · contingency plan · quick cash · borrowing · maturity · escrow account · funding · working capital · capital · real estate · down payment
- debtscredit card debt, loans, medical debt, student debt, student loans
- loansloans, lend, borrow, auto loans, bank loans
- fundingfunding, grant, grants, venture capital, crowdfunding
- temporarytemporary, temp job, interim, temp worker, provisional
- temporary supportstopgap, emergency aid, relief fund, disaster relief, bailout
- lendingloans, borrower, approval, lenders, lender
bridge loanlong-term loan
Debt spanning multiple years
mortgage · term loan · permanent loan · conventional mortgage · fixed-rate mortgage