Bridge Loan

Many lenders offer a bridge loan to allow a buyer to buy another home while waiting to sell his or her present home. You can obtain a bridge loan if you have a contract to sell your present home and you need the loan only for a specific, relatively short, period of time.

It is much more difficult to obtain a bridge loan if you do not have a buyer for your home and, thus, need to pay loans on two properties. Bridge loans usually carry a higher interest than a traditional home loan.