A bridge loan is a temporary financing option designed to help homeowners bridge the gap between the time your existing home is sold and your new property is purchased. It enables you to use the equity in your current home to pay the down payment on your next home, while you wait for your existing home to sell. Bridge loans are short-term solutions, they can be for as short a period as 2 weeks to 90 days and extend up to 12 months or longer.