A bridge loan is a short-term loan that “bridges the gap” between other types of long-term financing. Bridge financing is secured by real estate and have higher interest rates than conventional loans due to the higher risk associated with these loans. They are designed for investors and borrowers who are involved in real estate projects or transactions such as hard money rehabs, making improvements on land, and purchasing short sales or foreclosures. Residential bridge loans and commercial bridge loans are available to property owners who wish to borrower against the equity in their property.