Finance
A bridge loan is used to:
AFinance a commercial bridge or overpass construction
BProvide short-term financing to allow a buyer to purchase a new home before selling their existing one✓ Correct
CConnect first and second mortgages into one payment
DFinance the gap between the appraisal and sale price
Explanation
A bridge loan (swing loan) provides short-term, interim financing allowing a buyer to use equity from their current home to purchase a new one before the old home sells. It 'bridges' the gap between the two transactions.
Related Arkansas Finance Questions
- Ginnie Mae (GNMA) primarily supports the mortgage market by:
- A loan in which the interest rate changes periodically based on an index is called a(n):
- Arkansas is a 'lien theory' state. This means that when a borrower takes out a mortgage:
- RESPA (Real Estate Settlement Procedures Act) prohibits:
- Discount points paid at closing are used to:
- Arkansas uses which security instruments to secure a real estate loan?
- An FHA loan requires borrowers to pay a Mortgage Insurance Premium (MIP). This insurance protects:
- What is the purpose of the Truth-in-Lending Act (TILA)?
Practice More Arkansas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Arkansas Quiz →