Young man purchasing move-in-ready model home in new subdivision. Developer offers to sell model furniture with real estate. Both serve as collateral. This is:
Correct Answer
C) Home equity conversion loan
A package loan is specifically defined as a mortgage that covers both real property and personal property in a single loan, which is precisely what occurs when a developer sells a model home along with its furniture under one financing arrangement. Both the real estate and the furniture serve as collateral for the same loan, matching the definition of a package loan exactly.
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