Bridge Loan

A Bridge Loan is a short-term loan that allows you to buy your new house immediately after obtaining a sale contract for your old house. Because mortgages can take some time to underwrite, many lenders will offer a bridge loan for the full purchase price of your new home. Often called a "swing loan", it is simply a way of avoiding timing headaches.

Because a bridge loan is an unsecured loan for a large amount of money, they will almost always require a properly executed sale contract or some other form of collateral.