Bridge loan
Definition
A bridge loan is a short-term loan used to cover a timing gap, such as buying a home before another home is sold, or financing a construction period. Official commentary also calls it a temporary loan. It is not a construction-loan page.
In plain English
A borrower sometimes needs money for a short stretch, then expects another sale or a longer mortgage to take its place. That short-term loan is a bridge loan. Structures and terms vary. This page names the idea. It does not treat any one term length or exemption as the consumer definition.
Technical definition
Official commentary to 12 CFR 1026.43 names a temporary or bridge loan and gives examples such as buying a new dwelling while selling another, or financing initial construction. That naming is PRIMARY. The commentary’s exemption language is not the product definition.
Why it matters
Shoppers mix bridge loans with construction loans. The official text treats construction as one example of a temporary loan, not as the same product page.
Related terms
Sources reviewed
12 CFR 1026.43
ObservedSeptember 6, 2026
Important note
This page does not treat a particular term length or regulatory exemption as the universal definition.