DEFINITION OF 'BRIDGE LOAN'
A short term bridge loan that is used until a person or company secures permanent financing or removes an existing mortgage or lien . This type of financing allows the user to meet current obligations by providing immediate cash flow. The loans are short term (up to one year) with relatively high interest rates and are backed by some form of collateral such as real estate or inventory.
Bridge Loans Are used for the following property types
multifamily or mixed use