Finance
A 'construction-to-permanent loan' in Mississippi is used when:
AA buyer is purchasing a pre-existing home
BA borrower is building a new home; the construction loan automatically converts to a permanent mortgage at completion✓ Correct
CA buyer is buying commercial property
DA lender requires two separate loan applications
Explanation
A construction-to-permanent loan finances home construction with short-term draws, then automatically converts to a long-term permanent mortgage when construction is complete, saving the borrower the cost of two separate closings.
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