Question:

How does a bridge loan work?

Answer:

A bridge loan works as follows: it is a temporary "gap" financing that helps you through until permanent funds arrive, or until another property is sold.

How will a bridge loan work for you?

You are buying a house but your old one has not been sold. Although it will be old soon, currently you don't have the cash to buy your new home. No bank will get you a loan for several months only. Time to go to a bridge loan lender.

Your lender or broker is backing off on you and you don't have the time to arrange a new loan with another bank. This is how a bridge loan will work to get you out of worry - a bridge loan will help you get your desired property until you arrange permanent mortgage for that new house.

You need money for property conversion. A bank will rarely offer loans for property conversion, but a quick construction bridge loan will be able to help you buy and reconstruct the property. Also, a bridge loan will help you when buying property for quick rehab.

If your credit score has dropped, you have a large sum payment due and your funds are exhausted right now, but you expect them to replenish soon, a bridge loan will help you out until you sell, refinance, or capitalize on some assets.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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