Posted on: 17th Jun, 2007 12:17 am
Is there really any difference between the terms, or is it just industry slang?
Bridge loans, gap loans, swing loans : They are all same or their purpose is same just the names are different. Basically the loan term is very short in such products For Ex : 6,9,12 Months.
Best Example : Flagstar Bank has a Loan program of 6,9,10,12 Month known as Bridge Loan Financing.
Regards
Sagar
Best Example : Flagstar Bank has a Loan program of 6,9,10,12 Month known as Bridge Loan Financing.
Regards
Sagar
Hi Dbaker,
As far as I know, bridge loans and swing loans are one and the same. Bridge loan is a short term financing option which helps you to borrow against your home equity. You can use it for the down payment on a new home.
Gap loans are financing options that help you to fill up the difference between the initial funding of a construction loan and the entire amount of permanent loan.
Say for example, a developer arranges for a mortgage worth $2 million against an apartment which is 80% occupied. From the time of construction till the 80% occupancy state is reached, the loan amount is worth $170000. So, there is a deficit of $30000 which the developer makes up for by taking out a gap loan for a time period during which the occupancy increases from 80% to 100%.
Thanks.
As far as I know, bridge loans and swing loans are one and the same. Bridge loan is a short term financing option which helps you to borrow against your home equity. You can use it for the down payment on a new home.
Gap loans are financing options that help you to fill up the difference between the initial funding of a construction loan and the entire amount of permanent loan.
Say for example, a developer arranges for a mortgage worth $2 million against an apartment which is 80% occupied. From the time of construction till the 80% occupancy state is reached, the loan amount is worth $170000. So, there is a deficit of $30000 which the developer makes up for by taking out a gap loan for a time period during which the occupancy increases from 80% to 100%.
Thanks.
Thanks for the replies!