Finance
A New Mexico buyer uses a bridge loan to purchase a new home before their current home sells. A bridge loan is:
AA long-term fixed-rate loan
BA short-term loan secured by the current home to provide funds for the new home down payment✓ Correct
CAn FHA loan for non-traditional buyers
DA construction loan for new development
Explanation
A bridge loan is a short-term financing solution that 'bridges' the gap between the purchase of a new home and the sale of an existing one. It is typically secured by the departing home's equity.
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