When seeking a Bridge Loan the borrower
A)Owns one piece of property and wishes to purchase another.
B)Borrows only the down payment on a second piece of property.
C)Borrows the down payment and closing costs on a second piece of property.
D)A & B above
E)A & C above

Question

Quizplus · Accepted Answer

A Bridge Loan is used when the borrower owns one property and wishes to purchase another. The loan covers the down payment and closing costs on the second property, making it possible for the borrower to close on the second property before selling the first. Therefore, option E, which includes both A and C, is the best choice. Option B is not a typical use for a Bridge Loan, as it only covers the down payment and not the closing costs.

When Seeking a Bridge Loan the Borrower