Bridge Loans: Short-Term Financing for Real Estate Transitions
EDP Realty Team
November 30, 2025
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Master bridge loans for real estate: understand when to use short-term financing, how to bridge the gap between property purchases and sales, and strategies for successful transitions.
Bridge loans are short-term financing solutions that "bridge the gap" between an immediate real estate need and a future funding source. These temporary loans help investors and homeowners secure new properties before selling existing ones, complete time-sensitive acquisitions, or transition between different types of permanent financing. The term "bridge" describes the loan's purpose: providing temporary funding to get from Point A (current situation) to Point B (permanent financing or property sale). Once you reach Point B, you pay off the bridge loan and transition to your permanent financing solution. Typical Characteristics:
- Term: 6-24 months (12 months most common)
- Purpose: Temporary financing until permanent solution available
- Rates: 7-14% interest
- Payments: Interest-only monthly (sometimes no payments if short term)
- Exit Strategy: Property sale, refinance, or permanent financing
- Approval: Fast (7-21 days) Common Bridge Loan Scenarios:
