If you are buying and selling a house simultaneously while on a budget, you likely have all your fingers and toes crossed that the timing works out just right. But what happens if the perfect house comes on the market, but you still have yet to get any bites on your current one?

In this scenario, a bridge loan can make the math possible. Basically, a bridge loan is a type of short-term financing that can provide immediate cash to fund a down payment or closing costs if, say, you do not yet have the proceeds from the sale of your current home. While this option is a definite asset to have on the table when you are in a tight financial spot, it does have some downsides and risks, though.

How does a bridge loan work?

A bridge loan is a "short-term loan — often less than a year — that c

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