A bridge loan, which can also be called a hard money loan, is a short-term loan that is used until a person or business can get permanent financing. Basically, they "bridge" the gap between today's need for quick cash to pay bills and the final closing of an investment deal or long-term financing package.
Most bridge loans have terms of 12–36 months, and many of them can be refinanced into low-cost, long-term loans. Bridge loans not only have shorter terms, but they also need to close quickly. This gives the borrower the chance to get a longer-term loan when they are ready. When financing a bridge loan, speed is also important because the borrower may be trying to restructure debt or stay out of bankruptcy.
Some people look for a "bridge loan" to cover the time between buying a new home and selling their old one. Most bridge loans, on the other hand, are used to buy or refinance commercial real estate. Mortgage bridge loans and commercial bridge loans are available for a wide range of income properties, such as apartments, industrial buildings, retail stores, hotels, healthcare facilities, and mixed-use properties.
Security National Capital has more information about bridge loans at a href="http://www.sncloans.com/mortgage-bridge-loan.html">http://www.sncloans.com/a>.
