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What Is a Bridge Loan in Real Estate?


A bridge loan is used by individuals and businesses to cover any kind of short-term expenses. This allows borrowers to get immediate cash flow until permanent financing for a business or deal is secured. 


In real estate, this bridge loan is used by homebuyers or investors during the transitional period as they need capital to move from their current residence to a new one. These bridge loans are secured by pledging any asset as collateral to the lender. 
In most cases, the borrowers use their current home as collateral to get this interim financing. Generally, bridge loans have higher interest rates and often last between six months or a year. Share your experience?
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 Hello,Yes you are right, also a bridge loan be a useful to help buyers get the money they need to purchase a new property before selling their current property. With bridge loans, buyers are able to cover the gap between the sale of their existing home and the purchase of their new one. You can visit the commercial bridge loan website for more information.
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