Interim financing, also known as bridge financing, is temporary financing required to complete the purchase of a new home before your existing home has sold.
If you will be using the money from the sale of your existing home as a down payment on a new home, but do not have these funds available then you will need Interim financing to bridge this gap. This type of financing is available but can be expensive, so it is always best to have the sale of your existing home and possession of your new home coincide.
Some lenders offer interim financing directly, while others will leave it up to you to find the funding required elsewhere. It is important to know before you get into this situation that interim financing can be reasonable if handled properly, but in some situations it can be very expensive!