Finance
A 'bridge loan' is a type of short-term financing used to:
ABridge the gap between a fixed and adjustable rate mortgage
BProvide short-term financing to a buyer who needs to purchase a new home before selling their existing one✓ Correct
CFund a commercial development from approval to construction
DProvide emergency funds to prevent foreclosure
Explanation
A bridge loan is a short-term loan that 'bridges' the gap when a buyer needs to purchase a new home before receiving proceeds from the sale of their current home. Bridge loans typically carry higher interest rates and are secured by the buyer's existing property.
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