Finance

A Wyoming buyer uses a bridge loan to purchase a new home before selling their existing home. A bridge loan is:

AA long-term mortgage at a below-market rate
BA short-term loan secured by the buyer's current home to fund the purchase of a new home✓ Correct
CA government-guaranteed loan for rural housing
DA construction loan for new home building

Explanation

A bridge loan (swing loan) is short-term financing secured by the borrower's existing property equity, used to bridge the gap between buying a new property and selling the old one. They typically have higher rates and short terms (6–12 months).

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