Finance
A Mississippi lender offers a 'construction-to-permanent' loan. This loan product:
AFunds only the land purchase
BProvides financing for both the construction phase and automatically converts to a permanent mortgage upon project completion, eliminating the need for a second closing✓ Correct
CRequires two separate closings — one for construction and one for the permanent loan
DIs only available for commercial projects
Explanation
A construction-to-permanent loan (also called a single-close or one-time-close loan) finances construction and then converts to a permanent mortgage automatically at completion, avoiding the cost and complexity of a second closing. This product is popular for custom home construction in Mississippi.
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