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COMMERCIAL BRIDGE LOANS
Commercial bridge loans are a short term real estate loans
which provide short term financing to the property owner for
completion of some task. These tasks can be improving the
property, selling the property or finding a new tenant. These
loans are also called mortgage bridge loans and they are
known as short term commercial business loans as well.
These are used for purchasing commercial properties when
there is no availability of permanent financing option. As
commercial bridge loans are have short term prepayment
period of 6 months to 3 years, they do not have prepayment
penalty. After being repaid, the property is refinanced or sold
with permanent financing.