Bridge Financing is Common With Residential Purchases
In many cases, a home owner will put an offer to purchase on a new property subject to selling their existing property. But sometimes, if they want the right property, they will not be able to put the subject to clause in. This can result in the applicant owning two properties at the same time.
In order to accomplish this, the buyer may utilize the equity in the first property to help secure a loan for funds for the second property. This would be bridge financing by definition which will be immediately retired as soon as the first property is sold.
