Don’t let the name fool you: a bridge loan is not a loan to build a bridge. Bridge loans (or “swing loans,” as they are sometimes called) are essentially loans that bridge a financial gap as you transition from one home or property to the next.
Benefits of bridge loans
Sometimes circumstances require you to make a move before you’ve got the funds to do so. That’s where a bridge loan comes in. A bridge loan, as its name suggests, creates a financial bridge so that you can purchase a second property quickly without a lot of contingencies or waiting around. Bridge loans are helpful because they prevent you from having to rent a temporary space or wait until you have the money saved up to make the transition!
Check out this video for a visual explanation of what bridge loans are and how bridge loans work.
How to decide if a bridge loan is right for you
If you’re considering a bridge loan, here are some quick facts to help you get an idea of whether or not it might be a good option for you:
- Bridge loans are short term
- Bridge loans don’t have penalties if you pay them off early
- Bridge loans allow you to quickly make a transition
- Bridge loans work for homeowners and corporations
- Bridge loans are a great way to get quick cash to purchase a new property
Don’t have the money to buy a bigger space? Need financial assistance in order to move to a better location? Reach out to Key Capital for all of your bridge loan financing needs!