Finance
A construction loan differs from a traditional mortgage in that:
AIt has a longer repayment term
BFunds are disbursed in draws as construction progresses, then converted to a permanent mortgage✓ Correct
CIt requires no appraisal
DIt carries a lower interest rate
Explanation
A construction loan disburses funds in stages as construction milestones are met. Upon completion, it typically converts to or is replaced by a permanent mortgage.
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