This is a type of program that you would use if you were trying to finish a half-completed project and you don't have the financial or credit to get a traditional loan. Also good for Fix and flips, Fix to Rent, and Fractional financing.
In real estate transactions, bridge loans are used to quickly close on a deal before a long-term loan or mortgage with a lower interest rate is obtained. In commercial real estate transactions, bridge financing gives buyers the flexibility they need to quickly take advantage of short-term opportunities.
A construction loan is borrowed for a duration that covers the time it takes to build a house. Both builders and homebuyers can seek these loans, and they cover the expenses associated with many of the construction expenses that the housebuilder incurs, including:
Inspections and permits.