Finance
A construction-to-permanent loan in Arizona converts from a construction loan to a:
ASecond mortgage at construction completion
BPermanent (long-term) mortgage once construction is complete, with one closing✓ Correct
CInterest-only loan for 10 years
DLine of credit based on the improved value
Explanation
A construction-to-permanent loan (or one-time close) converts automatically from a construction loan to a permanent mortgage upon completion of construction, requiring only one closing and one set of closing costs.
Related Arizona Finance Questions
- An Arizona buyer assumes the seller's existing mortgage. The buyer's lender requires a 'due-on-sale' clause to be enforced. This means:
- An Arizona lender who originates loans and immediately sells them in the secondary market is engaging in the:
- Under RESPA, a Loan Estimate must be provided to the borrower within:
- In Arizona, a deed of trust involves how many parties?
- The primary security instrument used in Arizona real estate transactions is:
- Under RESPA (Real Estate Settlement Procedures Act), a lender must provide the buyer with a Loan Estimate within:
- Which type of mortgage index is commonly used for ARM loans?
- Arizona is classified as a 'lien theory' state. This means that when a borrower takes out a mortgage:
Practice More Arizona Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Arizona Quiz →