Finance
In Michigan, a construction loan typically converts to a permanent mortgage upon:
AObtaining a building permit
BCompletion of construction and issuance of a certificate of occupancy✓ Correct
CWhen the first foundation is poured
DAfter 12 months of construction draws
Explanation
A construction loan is a short-term loan financing construction. Upon completion and issuance of a certificate of occupancy, it typically converts to (or is replaced by) a permanent long-term mortgage through a 'construction-to-permanent' loan or refinance.
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