Finance
A 'bridge loan' in Texas real estate is typically used when:
AA buyer is waiting for new construction to be completed
BA buyer needs short-term financing to purchase a new home before their current home sells✓ Correct
CA commercial developer needs long-term permanent financing
DA seller needs to pay off multiple mortgages simultaneously
Explanation
A bridge loan is a short-term loan that 'bridges' the gap between the purchase of a new home and the sale of the buyer's existing home. It allows the buyer to close on the new property before selling the old one. Bridge loans are typically more expensive and require the borrower to qualify while carrying both properties.
Related Texas Finance Questions
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