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

Post a Comment

Try These Too!

Bolted connections

What is the minimum spacing of bolts specified by AISC? and preferred spacing? A. 1 1/4 times the diameter of the bolt; 2 times preferred B. 1 3/4 times the diameter of the bolt; 2 1/4 times preferred C. 2 1/3 times the diameter of the bolt; 2 2/3 times preferred D. 2 2/3 times the diameter of the bolt; 3 times preferred E. 3 times the diameter of the bolt; 3.25 times preferred
Post a Comment
See the answer »

Brick bonds

What distinguishes the English Bond pattern from the Dutch Bond pattern in this image? Answer In the English Bond, stretchers are aligned; In the Dutch (cross), stretchers move by a half each course (not aligned). ARE 4.0 exam prep: BDCS
Post a Comment
See the answer »

Collector walks

Walks next to parking areas where vehicles are able to overhang the walk should be a minimum width. What is this minimum in feet? A. 3 feet B. 4 feet C. 5 feet D. 6 feet Answer These walks should be 6 ft (D.) minimum in width. ARE 4.0 exam prep: SPD
Post a Comment
See the answer »