Construction, Bridge, Blanket & Package Loans

Specialty loans map to situations. CONSTRUCTION: short-term, funds released in DRAWS as stages complete, interest-only, replaced by permanent 'take-out' financing. BRIDGE (swing): covers the gap between buying the new home and selling the old one. BLANKET: one loan over MULTIPLE parcels with a PARTIAL RELEASE clause freeing each lot as it sells — the developer's loan. PACKAGE: finances real estate PLUS personal property (furnished condo, restaurant with equipment). Open-end: can be re-borrowed up to a cap, like a HELOC. Match the fact pattern to the loan name — that's the entire exam skill here.