A gap loan, also known as a bridge or swing loan, fills the difference between a floor loan and the full amount of a permanent loan, providing temporary financing until the borrower meets certain conditions necessary for permanent loan funding.
A Swing Loan is a short-term loan that helps homeowners purchase a new residence before selling their existing property. Often used when homeowners need to secure a new home promptly, usually a few weeks to a few months. Check out related terms like Bridge Loan and Gap Loan.
