Definition
Short-term financing used to acquire or reposition a property before permanent financing or a sale.
Example
The buyer used a twelve-month bridge loan to close quickly, then refinanced into agency debt after stabilization.
Related terms
- Balloon Payment
- Clear Height
- Co-Tenancy Clause
- Common Area Maintenance
- Due Diligence
- Estoppel Certificate
Frequently asked questions
What does Bridge Loan mean in real estate?
Short-term financing used to acquire or reposition a property before permanent financing or a sale.
How is Bridge Loan used in practice?
The buyer used a twelve-month bridge loan to close quickly, then refinanced into agency debt after stabilization.
This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.