Finance
What is a 'construction loan' and how does it differ from a permanent mortgage in Kansas?
AThey are the same type of loan with different names
BA construction loan provides short-term financing during building, with draws released as construction progresses; it is replaced by a permanent mortgage upon completion✓ Correct
CA construction loan requires no down payment
DA construction loan is only available through the state of Kansas
Explanation
A construction loan is short-term financing covering the cost of building. Funds are released in draws as construction milestones are met. Upon completion, it is replaced by a permanent take-out mortgage.
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