If you need short-term financial assistance when you are in between selling your old house and buying your new home, then what you need is known as a “ bridging loan“. You can use this loan to buy your new property even if you haven’t sold the old one. Of course, when you sell your old property, you use the proceeds to repay the loan.
This type of loan can also finance business concern, because you have applied for a business loan. You can use a temporary loan to keep the business going until you actually get a business loan. Bridging a secured loan where you use residential or commercial property as collateral.
This type of loan has a deadline, which I believe is two years, but the loan period can only be a few days or weeks. The good news is that these loans are not difficult to obtain and can be managed quickly. The bad news is that the interest rate is high, and only uses this type of loan to bridge the gap between transactions.
If you take this type of loan, make sure that you choose a good place to find bridging loans in accordance with the terms of the loan and pay it as agreed, otherwise you can find property taken over by the loan company. The interest rate charged depends on the property value involved and the borrower’s credit score.
It goes without saying that you have to pull out all the stops to sell your property as soon as you take one of these loans, because you will need funds to pay for new property, and of course, keep interest costs in reason. Even people with bad credit records can get a bailout loan, but as usual, interest rates will be higher. Look at all angles before you even think about taking one of these loans, or you can get into deep water.