Debt incurred to acquire, construct, or substantially improve a principal or secondary residence to the extent that such indebtedness does not exceed $1 million is called an):

Question

Quizplus · Accepted Answer

The correct term for this type of debt is acquisition indebtedness. This refers to money borrowed specifically to acquire, construct, or substantially improve a primary or secondary residence, and has a limit of $1 million.

Debt Incurred to Acquire, Construct, or Substantially Improve a Principal