Finance
A Massachusetts buyer uses a 'bridge loan' to purchase a new home before selling their current home. A bridge loan is:
AA government-backed affordable housing loan
BA short-term loan using equity in the current home to finance the new purchase✓ Correct
CA construction loan for building a new home
DA 30-year fixed loan with a balloon payment
Explanation
A bridge loan is a short-term loan that uses the equity in the borrower's current home to fund the down payment on a new home. It is repaid when the original home is sold.
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