Commercial Hard Money

Bridge Loan

A loan that "bridges" the gap between the purchase of a new property and the sale of the borrower's current property. The borrower's current property is used as collateral and the money is used to close on the new property before the current property is sold. Some are structured so they completely pay off the old property’s first mortgage at the bridge loan's closing, while others pile the new debt on top of the old. They usually run for a term of six months.