A “bridge loan” is a temporary, short term loan that is intended to “bridge” a financial gap during a short period of time that someone needs money temporarily. It is usually required when someone is buying a house but cannot schedule the sale of his/her existing home before his/her purchase. Consequently, the buyer does not yet have the money from his/her sale to put toward the purchase, as was intended. In this case, the buyer obtains a “bridge loan” for this amount, to bridge the gap of time between the purchase and the sale. When the sale occurs, the buyer uses the money received to pay off the bridge loan.
