Which type of mortgage is often utilized by buyers who plan to resell property quickly?

The type of mortgage that is often utilized by buyers who plan to resell property quickly is the bridge loan. A bridge loan is designed to provide temporary funding, effectively bridging the gap between the purchase of a new property and the sale of an existing one. This type of financing is particularly useful for buyers who need immediate access to funds to purchase a new home before their current property sells.

The key attribute of a bridge loan is its short-term nature, usually with a term of 6 months to a year, which aligns perfectly with the strategy of reselling property quickly. It enables buyers to act swiftly in a competitive market without waiting for the sale of their previous property, thereby facilitating quick transactions.

In contrast, other types of mortgages serve different purposes. A reverse mortgage is primarily intended for homeowners aged 62 and older and allows them to convert part of their home equity into cash without having to sell their property. Conventional mortgages are longer-term loans used for purchasing residential properties, while a blanket mortgage covers multiple properties under one loan, typically used by investors rather than homeowners looking for quick resale.