Finance
What is 'construction loan' financing in Rhode Island and how does it work?
AA permanent mortgage for new construction
BA short-term loan disbursed in draws as construction milestones are met, converting to a permanent mortgage upon completion✓ Correct
CA government loan for affordable housing construction
DA loan secured by construction equipment
Explanation
A construction loan is a short-term, high-interest loan disbursed in stages ('draws') as construction progresses. Upon completion, it is typically replaced by permanent financing (a take-out loan/permanent mortgage).
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