Definition of Bridge loan:
Short-term (usually one to three months) loan advanced to cover the period between the termination of one loan and the start of another. It is arranged generally to complete a purchase (such as a new house) before the borrower receives payment from a sale (of the old house), or before a long-term loan is made available upon fulfillment of its requirements (such as commissioning of a facility or a plant). Also called bridge finance, bridging loan, or gap financing.
These types of loans are also called bridge financing or a bridging loan.
A sum of money lent by a bank to cover an interval between two transactions, typically the buying of one house and the selling of another.
A bridge loan is a short-term loan used until a person or company secures permanent financing or removes an existing obligation. It allows the user to meet current obligations by providing immediate cash flow. Bridge loans are short term, up to one year, have relatively high interest rates, and are usually backed by some form of collateral, such as real estate or inventory.
How to use Bridge loan in a sentence?
- Homeowners can use bridge loans toward the purchase of a new home while they wait for their current home to sell. .
- When my home construction is completed I will need a bridge loan until I am approved for a traditional mortgage.
- These types of loans are generally used in real estate.
- Bridge loans are short term, typically up to one year.
- A bridge loan is short-term financing used until a person or company secures permanent financing or removes an existing obligation.
- If you find yourself in the position to need a bridge loan you will need to make sure that they dont take advantage of your situation.
- I expressed little or no emotion when he got a bridge loan.
- If you find a loan running out and need a little more in the short term you may need to undergo another bridge loan .
Meaning of Bridge loan & Bridge loan Definition