A bridge loan serves as a short-term loan to bridge a financing gap of some kind. Once the transaction completes, the loan is either paid off or refinanced conventionally, typically carrying higher interest rates than long-term conventional loans.
Common examples include:
- Selling an existing home to fund a down payment on a new purchase.
- Real estate investors financing a new flip while the previous property remains on the market.
- Business owners accessing short-term capital between income and expense timing.
- 1031 exchanges where property must be purchased within a 60-day window after sale.
For examples 1-2, NWPL places liens on both the property being sold and purchased (cross-collateralized). They can lend up to 100% of the new home's purchase price with sufficient equity in the existing property. The borrower receives a 1st position lien on the new property and 1st or 2nd position on the existing property.
For business owners needing quick access to equity, they must own real estate as collateral, requiring a 1st position lien with all other liens paid off first.
For 1031 exchanges, NWPL can finance the property being sold to fund the new purchase.
Contact 503-941-5473 or apply online.