#2: Bridge Loans Must be Supported by Security
Exactly as a mortgage was supported by the house that you order to your money, link funds have to be supported by equity to protect the brand new lender’s position. In a home, the most famous source of security is the client’s current domestic.
For example, for many who bought a different sort of home and got away a connection financing to cover financial on your own present family, their connection mortgage would be backed by your current domestic.