Finance
A Tulsa-area borrower is using a 'bridge loan' to finance the purchase of a new home before their current home sells. Bridge loans are characterized by:
A30-year amortization with low rates
BShort-term, higher-interest financing that 'bridges' the gap between buying a new home and selling the old one; they are typically repaid when the existing home closes✓ Correct
CGovernment guarantees from FHA or VA
DNo qualification requirements
Explanation
Bridge loans are short-term (typically 6-12 months) financing solutions that allow homeowners to buy before selling. They carry higher interest rates, require qualification (often both homes must qualify), and are repaid from the proceeds of selling the existing home.
Related Oklahoma Finance Questions
- A homeowner in Oklahoma who is facing foreclosure and has equity in their home should consider:
- An Oklahoma homeowner receives an offer from a company to buy their home through an iBuyer or 'cash offer' program. These programs typically:
- The annual percentage rate (APR) differs from the stated interest rate because:
- The Consumer Financial Protection Bureau (CFPB) oversees compliance with which mortgage-related laws?
- Fannie Mae and Freddie Mac are known as:
- An Oklahoma homebuyer who qualifies for multiple loan programs should evaluate:
- Oklahoma's usury laws set limits on:
- USDA Rural Development loans in Oklahoma are designed to assist buyers in:
Practice More Oklahoma Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Oklahoma Quiz →