Finance
A NC 'swing loan' (bridge loan) is used when a buyer needs to purchase before their current home sells. The risk of this financing strategy is:
ANo risk, as the buyer always has equity
BThe buyer may carry two properties if the current home does not sell promptly, creating financial strain✓ Correct
CThe interest rate is always fixed
DIt always requires perfect credit
Explanation
The primary risk of bridge financing is that if the buyer's current home does not sell as expected, they may be financially obligated on two properties simultaneously, creating significant financial strain.
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