One type of loan, called a “bridge loan”, usually permits you to borrow against the equity in your present home to make a down payment on a new home. Foreclosure Listings. Bridge loans are usually offered at a higher interest rate than conventional mortgages, have a shorter term, may require the prepayment of up to six months of interest, and involve payment of points.

There are also funding sources called “high risk lenders” who provide loans in situations that are too risky for banks and conventional mortgage companies. Florida Hard Money Loans. These lenders generally finance only 70% of the amount needed. These loans will be short term, high interest rate and require multiple points to close the loan. Negative News. These lenders are normally private equity lenders who deal with borrowers who have bad credit or cannot verify their income.