Skip to main content

Loans for Development


Which of the following types of loans is repaid as part of the selling price when a developer uses the loan proceeds to buy land, which is then subdivided and resold?
A. bridge loan
B. conventional mortgage
C. blanket loan
D. reverse mortgage




Answer is C. blanket loan.
A. is used to buy property and quickly start construction before approval of a long-term loan, in B. a fixed or variable interest rate is applied to borrowed money over a fixed period until the amortized payments are repaid, D. is not a development loan: a 62 year or older borrower is able to release equity in a principal residence with no payments required.
are-review.blogspot.com

Comments

Try These Too!

Structural forces

Choose a term that best identifies the type of force shown in this diagram - A. collinear B. concurrent C. nonconcurrent D. noncoplanar

Fire detection

Which of the following detector types can detect smoke or a smoldering fire that has not yet burst into flames? A. Ionization B. Rise-of-temperature C. Photoelectric D. Flame detectors