A residential bridge loan is a short-term loan that is used to bridge the gap between the purchase of a new property and the sale of an existing property. It is typically used by homeowners who have found a new home they want to buy but have not yet sold their current home. The loan is secured by the borrower’s existing property and allows them to make a down payment on the new property before the sale of the old property is completed. Once the old property is sold, the borrower can use the proceeds to pay off the bridge loan or refinance it with a traditional mortgage.