Finance
A 'bridge loan' in Pennsylvania real estate is used by buyers who need to:
AFinance the construction of a new home before permanent financing
BPurchase a new home before selling their existing home using the existing home's equity as collateral✓ Correct
CBridge the gap between the appraised value and purchase price
DSecure a mortgage during a period of credit repair
Explanation
A bridge loan is a short-term loan that allows a buyer to purchase a new home before their existing home sells, using the existing home's equity as collateral. Bridge loans typically have higher interest rates and are repaid when the existing home closes.
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