Finance
A Florida developer uses a 'construction loan.' This type of financing is characterized by:
AA fixed long-term mortgage disbursed all at once
BShort-term financing with funds disbursed in draws as construction progresses, typically converted to a permanent mortgage upon completion✓ Correct
CA government-backed loan with no interest during construction
DA line of credit that requires no repayment until the property is sold
Explanation
A construction loan is short-term financing for building a property. Funds are disbursed in stages (draws) as construction milestones are met. Upon completion, the loan typically converts to (or is replaced by) a permanent long-term mortgage.
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