| Here are the basic types of loans that you will be | | | | "bridge" for beginning construction of your new home |
| dealing with when choosing a loan for your new | | | | while you sell your current home. Your current home |
| home building project. | | | | serves as collateral for the bridge loan. Typically, |
| Finding the right loan or loans for your building project | | | | financial institutions charge a slightly higher interest |
| could feel like a balancing act. Here are the basic | | | | rate for this type of loan, along with processing and |
| types of loans that you will be dealing with: | | | | administrative fees. Most residential bridge loans are |
| Bridge Loans are short-term loans designed to span | | | | written to last for six months or less. You have to |
| the monetary gap between the closing of your new | | | | be able to afford to carry the three loan payments: |
| home and the closing of your current home. As the | | | | the old mortgage, the new mortgage, and the bridge |
| name implies, this type of loan provides a financing | | | | loan, until the closing on your old home. |