Finance
A construction loan is typically:
AA long-term 30-year loan that funds building construction
BA short-term loan that funds construction costs and converts to a permanent mortgage upon completion✓ Correct
CA government-backed loan exclusively for commercial construction
DA loan that requires no collateral during the construction phase
Explanation
A construction loan is typically a short-term, high-interest loan that funds building construction. Upon project completion, it is usually paid off and replaced by a permanent mortgage (take-out loan).
Related Utah Finance Questions
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- A Utah construction-to-permanent loan converts from:
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