If you are using the equity you have built within the home you are selling to purchase another home and your closing (possession) dates are not on the same day you will require bridge financing.

Bridge financing is a temporary loan that enables you to pay the down payment on the new home you are purchasing while you wait for the buyers of the home you are selling to move in. The loan bridges the gap between those days, allowing you to move into your new home before you have to be out of your old home.

A bridge loan is a relatively cost worthy way to accommodate for days between closing dates. Most bridge loans have a flat fee, along with a simple daily interest fee. This amount can vary slightly between lenders. The interest charged on the amount that is being lent and for the days required. Often there is a minimum and maximum amount as well as a maximum amount of days that are allowed to bridge.