Finance
A 'construction-to-permanent' loan in Alaska is primarily used for:
AFinancing the purchase of a building under construction
BA single loan that covers both the construction phase and then converts to a long-term mortgage upon completion✓ Correct
CFinancing major renovations to an existing home
DLoans for permanent agricultural improvements
Explanation
A construction-to-permanent (or one-time close) loan combines construction financing and the permanent mortgage into a single loan. During construction, the borrower draws funds and pays interest only; upon completion, the loan automatically converts to a permanent mortgage without requiring a second closing.
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