A bridge loan is a type of mortgage loan that is one form of Interim Financing usually registered as a first and/or second mortgage and is blanketed (Inter-Alia) across two or more properties titles to secure the loan. This type of short-term financing is used when one property is purchased and the selling property, where the down payment is coming from for the purchase, is not closing (selling date) until after the purchase date of the new property. A bridge loan is paid off immediately following the closing date of the selling home from the proceeds of the sale.