Finance
Vermont's construction loan differs from a permanent mortgage in that it:
AHas a fixed rate for 30 years
BIs a short-term loan that funds construction draws and converts to a permanent mortgage upon completion✓ Correct
CRequires no appraisal
DIs only available through VHFA
Explanation
A construction loan provides short-term funding during the building phase, disbursing funds as work is completed. Upon completion, the loan typically converts (or is replaced) by a permanent mortgage.
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