To provide perhaps the most succinct, basic explanation of what bridge financing is, it is a short-term loan that can help someone transition from an existing property or home to another. There is a lot more to it like the high costs but you can read more about that in previous blogs. What we’ll be elaborating on today is whether or not this type of loan is right for you.

A major perk of a bridge loan is it allows you to conduct your home search before you decide to put your existing home up for sale. It can also provide an advantage if, for example, you’re interested in a home but the seller is unwilling to accept contingent offers. The closing process can also be smoother as you may be able to close the sale of the new home prior to your current home.

Bridge loans have their advantage but the disadvantages must also be taken into account. For starters, they are more expensive when it comes to closing costs as well as interest rates. Your existing property may need to have a significant amount of equity to be considered. You’ll also need to take into account that you could end up having to make payments on two different properties, at least temporarily.

This update is by hard money l oans Miami company Monroe Funding Corporation, a direct equity lender serving clients throughout Central and South Florida. We specialize in first mortgages on non-owner occupied residential and commercial property investments as well as real estate loan options. Our fast and flexible loan programs get you to the closing table quickly and professionally. For more information on hard money lenders Miami or O rlando hard money le nding, please call 954-816-0388 or fill out our application.