Finance
A 'construction-to-permanent' loan converts:
AA commercial loan into a residential loan
BA short-term construction loan into a permanent mortgage automatically upon project completion✓ Correct
CAn adjustable-rate loan into a fixed-rate loan
DA second mortgage into a first mortgage
Explanation
A construction-to-permanent loan (single-close construction loan) automatically converts to a standard long-term mortgage when construction is complete, eliminating the need to qualify for and pay closing costs on two separate loans.
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