Understanding Bridge Loans: Bridging the Gap in Real Estate

A bridge loan, also known as a "gap financing" or "swing loan," is a short-term, temporary loan designed to "bridge" a financial gap. It's most commonly used in real estate transactions, particularly when a buyer needs to purchase a new property before their current property has sold.

How a Bridge Loan Works

Bridge loans are typically secured by real estate and have a shorter repayment period than traditional mortgages, often ranging from 6 months to 2 years. They are asset-based, meaning the approval is heavily dependent on the value of the collateral (usually the home being sold).

The visual below illustrates a common scenario where a bridge loan can be incredibly useful.

Price & Advice

According to Zillow, 81% of homeowners between 18 and 34 years old have at least one regret about buying their home.

Choosing a mortgage based solely on interest rate, without factoring in your broader financial plan, can limit your long-term wealth.

You deserve to own your home and build wealth. We’ll help you do both.

Kurt Kessler

NMLS #365130NMLS #365130

Client Success Stories

Ready to Get Started?

Let's discuss how we can help you achieve your homeownership and wealth-building goals

This is not a commitment to lend. All loans are subject to credit approval. This information is not intended to be an indication of loan qualification, loan approval or commitment to lend. Other limitations may apply. No Tax Return loans products require other forms of income documentation and asset verification in lieu of tax returns. Not all applicants will qualify. Some products we offer may have a higher interest rate, more points or more fees than other products requiring more extensive or different documentation. Minimum FICO, reserve, and other requirements apply.

Kurt Raymond Kessler NMLS #365130 | Barrett Financial Group, L.L.C. NMLS #181106 | 2701 East Insight Way, Suite 150, Chandler, AZ 85286 | CA 60DBO-46052 & 41DBO-148702

Licensed by Dept. of Financial Protection & Innovation under the California Residential Mortgage Lending Act. Loans made or arranged pursuant to a California Financing Law License