Which of these is NOT a likely feature of a bridge loan?

A bridge loan is designed to provide temporary financing, typically to cover the gap between purchasing a new property and selling an existing one. One of its defining characteristics is that it usually has a short maturity period, often not exceeding a year or two.

An amortized loan paid back over a period of no more than five years implies a structured payment plan with regular principal and interest payments, which contrasts with the typical use of bridge loans that frequently require interest-only payments during the loan term. This allows borrowers to maintain lower monthly payments while they wait for the sale of their current property.

Additionally, bridge loans are commonly secured by the existing home of the borrower, which aids lenders in mitigating risk, owing to the collateral involved in the transaction. They are indeed temporary and serve as short-term financing solutions, which aligns with the usual purpose of bridge loans in the real estate market.

Thus, while an amortized structure could theoretically exist in some forms of loans, it does not reflect the typical characteristics of bridge loans, highlighting why this choice stands out as not fitting the common features of a bridge loan.