Before you read
Test yourself first: 5 questions
Question 1 of 5
A subordination clause in a mortgage:
Answer: B. A subordination clause allows an existing lien to voluntarily move to a lower priority position, letting a different loan (such as a construction loan) assume the superior first-lien position.
Question 2 of 5
Fannie Mae and Freddie Mac are best described as:
Answer: B. Fannie Mae and Freddie Mac are government-sponsored enterprises that buy conventional (non-government) loans from primary lenders in the secondary market and package them into mortgage-backed securities.
Question 3 of 5
Fair-housing accessibility design rules apply to certain multifamily buildings first occupied after:
Answer: A. The Fair Housing Amendments Act added design/construction accessibility requirements for covered multifamily housing built for first occupancy after March 13, 1991.
Question 4 of 5
An unpaid contractor files a claim against a property for improvement work performed. This is a:
Answer: A. A mechanic's (construction) lien secures payment for labor/materials that improved the property. It is a specific, involuntary lien.
Question 5 of 5
The Fair Housing Act's accessible design and construction requirements apply to covered multifamily dwellings first occupied after March 13, 1991. A 'covered multifamily dwelling' generally means buildings with:
Answer: C. The Act's design and construction requirements apply to buildings of four or more units first occupied after March 13, 1991.
Keep the streak going with more questions like these, each with a full rationale.
What you need to know
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.
Construction, Bridge, Blanket & Package Loans: FAQs
Is Construction, Bridge, Blanket & Package Loans on the real estate exam?
Yes. Financing & Lending is a scored domain on the real estate licensing exam, and this topic appears in the national portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
