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What is a bridge loan?

A bridge loan used be a common item in a Cost of Living Adjustment (COLA) package. It is a loan from your construction employer to you for the purpose of making a down payment on a home. The loan was to be repaid when the employee's old home was sold. The loan allowed the employee to move before they had sold their old home. It is no longer legally allowed for corporations to make loans to their construction executives. Additionally, some corporations abused the practice.

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