Finance
In Michigan, a 'construction loan' differs from a permanent mortgage because it:
AHas a 30-year fixed rate
BIs short-term financing that funds construction draws as work progresses, typically converting to a permanent mortgage upon completion✓ Correct
CRequires no appraisal
DIs only available from government agencies
Explanation
A construction loan is short-term financing that funds construction in stages (draws) as work progresses, usually at variable rates. Upon completion, it converts to (or is replaced by) a permanent long-term mortgage.
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