Which type of loan provides financing without an existing property sale?

A bridge loan is a short-term financing option that provides funds for a borrower to use before securing permanent financing or until they sell an existing property. This type of loan is particularly useful in real estate transactions when the buyer needs immediate access to funds to facilitate the purchase of a new property before completing the sale of their current home. Because it fills the gap between buying a new property and selling an existing one, it uniquely fits the context of financing without the necessity of an existing property sale.

In contrast, a conventional loan typically requires a property to be involved in the loan agreement, as it is generally used for purchasing a home or refinancing an existing mortgage. A home equity loan leverages the equity in an existing property to provide a lump sum of cash, and a fixed-rate loan refers to the interest rate structure rather than the foundation of the loan type itself. None of these options offer the same interim financing solution as a bridge loan does.