Finance
A Wyoming construction loan differs from a permanent mortgage in that construction loans are typically:
AFully amortized over 30 years
BShort-term, interest-only during construction with draws disbursed as work progresses✓ Correct
CBacked by the federal government
DFixed-rate only
Explanation
Construction loans are short-term (typically 6-18 months), interest-only loans where funds are disbursed in draws as construction milestones are met. Upon completion, the borrower typically obtains permanent financing (takeout loan) to pay off the construction loan.
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