A bridge loan is
a type of short-term loan, typically taken out for a period of 2 weeks to
2 years pending the arrangement of larger or longer-term financing. Many
times the bridge loan product would be used in order to temporarily fund the
purchase of a new primary residence, while waiting for your current house to
sale. The idea is to “bridge” the equity in your existing residence once your
house sells into permanent financing for your new house.