Finance
In Montana, a 'construction loan' differs from a permanent mortgage in that:
AIt is always federally guaranteed
BIt is a short-term loan used to finance construction, with funds disbursed as construction progresses, and must be replaced by permanent financing after completion✓ Correct
CIt requires no down payment
DIt is only available for commercial properties
Explanation
A construction loan is a short-term loan that finances the building of a structure, with draws made as construction milestones are reached. Upon completion, it is typically replaced by a permanent mortgage (take-out loan).
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