Finance
In South Dakota, which type of mortgage allows the borrower to draw on approved funds as construction progresses?
AReverse mortgage
BConstruction loan (draw mortgage)✓ Correct
CHome equity line of credit
DBridge loan
Explanation
A construction loan is a short-term loan that disburses funds to the borrower/builder in draws as construction progresses and completed work is inspected. After construction is complete, the construction loan is typically replaced by a permanent mortgage.
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