Finance
A 'construction loan' in Alaska is typically structured as:
AA long-term fixed-rate mortgage disbursed in a single amount
BA short-term line of credit that funds construction draws as work progresses, converted to a permanent mortgage at completion✓ Correct
CA government-guaranteed loan for energy-efficient construction
DA second mortgage to fund renovation of an existing structure
Explanation
Construction loans are short-term (typically 6-18 months) lines of credit that fund the building of a new home through progress draws (disbursements as each phase is completed). Upon completion, the loan is either paid off or 'converted' to a permanent mortgage (construction-to-perm loan).
Related Alaska Finance Questions
- Which government-sponsored enterprise (GSE) purchases conventional conforming mortgages in the secondary market, providing liquidity to Alaska lenders?
- The Truth in Lending Act (TILA) requires lenders to disclose the:
- A 'mortgage servicer' in Alaska performs which of the following functions?
- Under the Equal Credit Opportunity Act (ECOA), lenders may NOT consider which factor when evaluating a mortgage application?
- When an Alaska lender evaluates a borrower's creditworthiness, the 'Four Cs of Credit' include all EXCEPT:
- A home equity line of credit (HELOC) in Alaska is best characterized as:
- Under the Real Estate Settlement Procedures Act (RESPA), a 'controlled business arrangement' (now called affiliated business arrangement) requires:
- A 'blanket mortgage' covers:
Practice More Alaska Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alaska Quiz →