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First, bridge loans are temporary loans secured by some type of asset, usually a home. The name bridge loan describes them quite well. The bridge refers to the gap between one loan and the other.
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Is a Bridge Loan a Good Idea? – Westchester Mortgage LLC – In real estate, a bridge loan allows investors to span the gap between their old and new loans. For an investor who finds a desirable property but needs to sell an existing property to afford the new one – and the closings don’t coincide – a bridge loan can be a valuable tool.
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