What Is A Bridge Loan?
A bridge loan serves as a short-term financial solution for homeowners and commercial property owners, bridging the gap between selling their current property and acquiring funds for the down payment on a new home or property. Lionfield Capital specializes in offering bridge loans to individuals looking to purchase new properties before selling their existing ones. Whether moving due to work, personal reasons, or property upgrades, individuals often require financial assistance when faced with a situation where the purchase of a new property precedes the sale of their current one. Bridge loans leverage the equity in the current property as collateral for the loan, providing funds for the new property’s down payment. Typically short-term, these loans can range from a few months to a year, offering a temporary financial solution until the original property is sold.
How To Qualify For A Bridge Loan?
To secure a bridge loan, applicants must provide the lender with the purchase agreement for the new property and the sale agreement for the current property. Traditional lenders typically require a firm closing date for approval, whereas private lenders may be more flexible if the closing date is not yet confirmed.
