Bridge loans (also called gap financing) are temporary, short-term loans that secure a purchase until longer term financing is arranged. If the purchase of your new home does not coincide with the sale of your existing home, this may be the option you are looking for. Instead of putting your purchase on hold, or worse, missing out on your dream home because your current home has not sold, you can use a bridge loan to close on your new residence. A bridge loan will allow you to finance your new home with the money you receive from a temporary loan secured by both homes. Once your existing home sells, the bridge loan will then be repaid with the proceeds from the sale.