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Home Construction Company has requested a loan to finance the materials and labor required to build two homes in a new neighborhood. Const five months.

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Home Construction Company has requested a loan to finance the materials and labor required to build two homes in a new neighborhood. Const five months. Which combination of disbursement terms and repayment schedule is the most appropriate for this purpose? Disburse loan funds in one lump sumrepayment should be in equal installments over a 20-year + period Disburse loan funds in one lump sum at the beginning of construction repayment will be in monthly installments during the five months of construction + Disburse loan funds evenly throughout the construction period, and arrange repayment in installments over a five-year period. Disburse loan funds as materials and labor are purchased; repayment will be expected in one lump sum at the end of the construction period

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