Finance
Which of the following best describes a bridge loan?
AA long-term mortgage for commercial properties
BA short-term loan that bridges the gap while a borrower awaits permanent financing or sale of another property✓ Correct
CA government-backed loan for first-time buyers
DA loan with interest that increases each year
Explanation
A bridge loan is a short-term loan used to 'bridge' a financing gap—for example, allowing a homebuyer to purchase a new home before their existing home sells, with the intent to pay it off with the proceeds.
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