Bridge financing is a short-term loan that is secured by the property or by a pledge of an interest in the
borrowing entity, pending the start of a long-term permanent loan. Bridge loans that are secured by the
property, are acceptable only in instances of Insurance upon Completion and
before the start of the FHA-insured permanent financing. Gap financing is a loan that may be secured by a
subordinate lien behind the permanent first mortgage to provide additional capital funds for the project;
it must meet the Guide’s requirements for secondary financing.