Finance
An Iowa bank issues a construction loan for a new home. After construction is complete, the owner obtains a permanent mortgage. This process is called:
ARefinancing
BConstruction-to-permanent financing (take-out loan)✓ Correct
CBridge financing
DMezzanine financing
Explanation
Construction-to-permanent financing (take-out loan) is when the construction loan converts to a permanent mortgage upon completion of the home. Some lenders offer a one-time close product that combines both stages.
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