Finance
In Maine, a 'construction loan' differs from a permanent mortgage in that it:
AHas a lower interest rate
BIs a short-term loan disbursed in draws as construction progresses, typically converted to a permanent mortgage at completion✓ Correct
CRequires no appraisal
DIs guaranteed by the state
Explanation
A construction loan is a short-term, higher-interest loan that funds building construction through draws (disbursements at project milestones). When construction is complete, it is typically converted (rolled into) a permanent mortgage.
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