California Real Estate Practice Exam

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Study for the California Real Estate Exam. Engage with multiple choice questions and detailed explanations to sharpen your knowledge. Get ready to ace your real estate career!

Practice this question and more.

What is a loan arranged by a builder that will pay off a construction loan and result in financing for the purchaser called?

Bridge loan
Takeout loan
Construction loan
Permanent loan

The correct answer is: Takeout loan

A bridge loan is usually a short-term loan that is used to bridge the gap between financing. It is commonly used to pay off a construction loan and provide financing for the purchaser. This is different from a construction loan, which is used to finance the actual building of a property, and a permanent loan, which is used for long-term financing for the completed property. Therefore, options A, C, and D are incorrect answers for this question.