Finance
In Vermont, a 'bridge loan' is typically used when:
AA buyer needs to cross state lines to close a transaction
BA buyer needs short-term financing to purchase a new home before their current home sells✓ Correct
CA commercial developer needs permanent long-term financing
DA lender needs to cover a gap in their reserve requirements
Explanation
A bridge loan (or swing loan) provides short-term financing to allow a buyer to purchase a new home before their existing home sells, 'bridging' the gap between the two transactions. Bridge loans are typically more expensive than conventional mortgages and are repaid when the old home closes.
Related Vermont Finance Questions
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