Construction Bridge Loans Require Speed
When a construction loan runs out of funds prior to completion, the need for a construction bridge loan may be required to fill the gap.
These loans are provided by private lenders that are prepared to provide relatively small amounts of money in a matter days based on the high percentage of completion of a given project.
The private lenders can advance more funding than the construction mortgage on average as the risk of completion has been greatly reduced allowing a higher loan to value to be advanced.
There will be a lenders fee to go with the interest rate, but overall the costs are pretty low compared to costs of a stalled out project.