Finance
In Missouri, a 'construction loan' is used to:
AFinance existing home purchases
BFinance the building of a new home, with funds disbursed in stages as construction progresses✓ Correct
CPay property taxes during construction
DFinance home repairs only
Explanation
Construction loans in Missouri are short-term loans that finance home or commercial building construction. Funds are disbursed in draws as construction progresses. Upon completion, the construction loan is typically converted to or replaced by a permanent mortgage.
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