FinanceIntermediateAlaska Exam

In Alaska, a 'bridge loan' is typically used when:

AA borrower is building a bridge on their property
BA homeowner needs short-term financing to purchase a new home before selling their current homeCorrect
CA developer is financing a bridge over a waterway
DA buyer needs to finance improvements to a property they are purchasing, under standard practice

Why A homeowner needs short-term financing to purchase a new home before selling their current home Is Correct

Answer B: A homeowner needs short-term financing to purchase a new home before selling their current home

A bridge loan provides short-term financing (typically 6-12 months) to allow a homeowner to purchase their next home using equity in their current home before that home is sold. It 'bridges' the gap between the purchase and the sale proceeds.

Exam Tip: Finance

Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.

People Also Study

Math Concepts

Practice More Alaska Real Estate Questions

1,400+ questions covering all exam topics. Start free — no signup required.

Take the Free Alaska Quiz →