What Exactly Is A Bridge Loan? The purpose of the bridge loan, or bridging finance, is to give the borrower needed cash until he secures a more long term loan or receives funding. The immediate cash flow that is provided by the bridging finance allows the borrower to meet current financial obligations while a de July 26, 2008 · Filed Under Finance · Comment by Alan Harding A bridge loan is a loan that a person (or sometimes a business) takes out for only a short time–no longer than one year. The mortgage loan itself is made by a bank, a savings and loan association, a mortgage company, a credit union, or any other lender. For it to become an FHA mortgage loan, the lender would have to be approved by the Federal Housing Administration.
