Finance
Which type of loan allows the borrower to draw funds as needed during a set period, using the home as collateral?
AReverse mortgage
BHome Equity Line of Credit (HELOC)✓ Correct
CConstruction loan
DPurchase money mortgage
Explanation
A HELOC is a revolving line of credit secured by the borrower's home equity, allowing draws and repayments during a draw period (typically 5-10 years), followed by a repayment period.
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