Bridge Loan
Direct definition
A short-term loan that provides funds to buy a new home before your current one sells.
Written by the Vabasso Mortgage Editorial Team · Reviewed against agency and federal sources · Read our editorial policy for how we research and review mortgage content
Plain-English explanation
Bridge loans are typically 6–12 months, secured by the departing home's equity. They give buyers cash for the new purchase and are paid off when the old home closes.
Why it matters
It lets you make a non-contingent offer or move on your own timeline instead of waiting for the sale to close.
Where you may see it
- Loan application
- Purchase contract
- Underwriting conditions
A real-world example
Educational and illustrative only
A common misunderstanding
A bridge loan is not a long-term financing solution — it's meant to be repaid quickly, usually from the sale of another property.
Frequently asked
Are bridge loans expensive?+
Usually — rates and fees are higher than a standard mortgage because of the short term and higher risk.
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- Author
- Vabasso Mortgage Editorial Team
- Reviewed by
- Vabasso Mortgage Licensed Advisory Team
- Last reviewed
- July 30, 2026