Contracts
In Virginia, a 'bridge loan' is used in which real estate scenario?
AWhen a buyer needs short-term financing to purchase a new home before selling their current one✓ Correct
BWhen a seller needs to repair the home before listing
CFor commercial development only
DTo replace a permanent mortgage
Explanation
A bridge loan provides short-term financing to allow a buyer to purchase a new home before the sale of their existing home closes. It 'bridges' the gap between the two transactions.
People Also Study
Related Virginia Questions
- A Virginia seller owes $180,000 on their mortgage. The home sells for $320,000. Selling costs are 7% of the sale price. What are the seller's net proceeds?Real Estate Math
- A Virginia seller owes $220,000 on their home. Selling costs are $18,000 and they need to net at least $50,000 after all costs. What is the minimum acceptable sale price?Real Estate Math
- A Virginia buyer makes an offer contingent on the sale of their current home. The seller accepts with a 48-hour kick-out provision. A second buyer makes an offer. The seller notifies the first buyer. The first buyer has 48 hours to:Contracts
- A Virginia buyer inserts a 'home sale contingency' in their offer. This means:Contracts
- A Virginia homebuyer who wants to buy a $700,000 home with only 5% down would need a jumbo loan if the conforming limit in their area is:Finance
- A Virginia purchase contract provides that 'time is of the essence' for the financing deadline. The buyer's lender needs 3 more days. The buyer should:Contracts
- A Virginia seller has $50,000 equity in their home. At closing, their agent informs them the buyer's lender requires that the seller pay 2 discount points on the buyer's $320,000 loan. How much must the seller pay?Escrow & Title
- A Virginia buyer makes an offer with a financing contingency. The buyer's loan is denied. Which statement is most accurate?Contracts
Key Terms to Know
Contingency
A condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Study This Topic
Practice More Virginia Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Virginia Quiz →