Finance
Bridge loans are sometimes used in Utah's real estate market when:
AA buyer cannot qualify for any permanent financing
BA buyer needs short-term financing to purchase a new home before their current home sells✓ Correct
CA builder needs to finance infrastructure in a new subdivision
DA commercial tenant needs working capital
Explanation
A bridge loan provides short-term financing to help a buyer purchase a new property before their existing home sells, 'bridging' the gap between the two transactions.
People Also Study
Related Utah Questions
- In Utah, the Real Estate Purchase Contract (REPC) is the standard form used for residential transactions. The REPC is promulgated by:Contracts
- A Utah buyer who removes all contingencies in their purchase contract but the deal later falls apart due to financing:Contracts
- A bridge loan in Utah real estate is typically used when:Finance
- A Utah home sells for $485,000. The sellers purchased it for $310,000 five years ago. After paying a 6% commission, what is their approximate gross profit before taxes?Real Estate Math
- A Utah property sells for $380,000. The seller's existing loan balance is $180,000. The 6% commission totals $22,800 and closing costs are $3,200. What are the seller's net proceeds?Real Estate Math
- A Utah property owner who sells their home but retains a right of first refusal for any future sale holds:Property Ownership
- In Utah, when a married couple purchases a home, the most common form of ownership that provides survivorship rights is:Property Ownership
- A Utah Purchase Contract that contains a financing contingency protects the buyer if:Contracts
Key Terms to Know
Loan-to-Value Ratio (LTV)
The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Study This Topic
Practice More Utah Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Utah Quiz →