Finance
A Washington lender provides a 'bridge loan' to a borrower. A bridge loan is best described as:
AA long-term permanent financing solution
BShort-term financing that bridges the gap between the sale of one property and the purchase of another✓ Correct
CA government-backed loan for first-time homebuyers
DA loan specifically for commercial real estate development
Explanation
A bridge loan is short-term financing (typically 6–12 months) used to bridge the gap when a buyer needs to close on a new property before their current property sells. Bridge loans typically carry higher interest rates due to their short-term and transitional nature.
People Also Study
Related Washington Questions
- A Washington borrower with an FHA loan wants to remove mortgage insurance. Under current FHA rules for loans originated after 2013 with less than 10% down, MIP:Finance
- A Washington borrower refinances their home to access equity. The loan that replaces the original loan and provides additional cash is called a:Finance
- A Washington lender who charges higher interest rates to borrowers based on their national origin is violating which law(s)?Fair Housing
- A Washington lender who discovers after loan closing that the borrower misrepresented their income may:Finance
- Under Washington law, a hard money lender who charges excessive fees and interest rates on a mortgage loan to a consumer may face liability under:Finance
- A Washington borrower has a $325,000 balance on their mortgage. The property appraised for $500,000. What is the current LTV ratio?Real Estate Math
- A Washington purchase and sale agreement specifies that 'time is of the essence.' On the final day of the financing contingency, the buyer's lender denies the loan. The buyer notifies the seller the next morning. The contingency:Contracts
- A Washington purchase and sale agreement is contingent on the buyer obtaining financing at a specific interest rate. The buyer cannot obtain a loan at that rate. The buyer should:Contracts
Key Terms to Know
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.
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.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Math Concepts
Study This Topic
Practice More Washington Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Washington Quiz →