Loan TypesHomebuying Glossary

Bridge Loan

A short-term loan that lets you buy a new home before selling your current one.

In plain English

A bridge loan uses the equity in your current home to fund a down payment on a new one, letting you buy before your existing home sells. It's short-term and typically carries a higher rate, repaid once the old home sells.

Why it matters

Bridge loans can solve a real timing problem when moving, but they add cost and risk if your current home takes longer to sell than expected.

Where you'll run into it

Guides and tools on TheBuyingPath that cover bridge loan in context.

Related terms

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