Land Acquisition, Development, and Construction Loans Used by Developers Differ

Land acquisition, development, and construction loans used by developers differ significantly from the "permanent" mortgages that traditionally are used to finance the purchase of commercial properties. All of the statements listed below are true regarding land acquisition, development, and construction loans EXCEPT:

A) Developers can never be held personally liable for such loans
B) These loans have floating interest rates tied to short-term interest rate indices
C) These loans are interest-only loans.
D) These loans can be prepaid at any time without penalty.

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