Buyers Using Margin Loans To Close Deals Faster

An increasing number of potential home buyers who need fast cash to close a deal or end a bidding war are turning to margin loans for short-term financing. Margin loans are backed by a borrower’s investments. Typically, brokerage firms permit loan amounts of up to 50% of the portfolio’s value at the time the loan is originated. The money can be used for almost anything, including bridge financing—when a buyer needs money to close on a new home when the current home hasn’t been sold yet.

Wall Street Journal  July 18, 2013