Finance
What is a 'construction loan' in Delaware?
AA permanent mortgage for newly constructed homes only
BA short-term loan that provides funds during the construction phase, to be replaced by a permanent mortgage after construction is complete✓ Correct
CA loan for renovating existing structures
DA loan guaranteed by the builder
Explanation
A construction loan is a short-term, often interest-only loan that disburses funds in draws as construction progresses. When construction is complete, it is typically converted to or replaced by a permanent (long-term) mortgage.
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