Finance
What is a construction loan in Nevada and how does it differ from a permanent mortgage?
AA construction loan is longer term; a permanent mortgage is shorter
BA construction loan provides short-term financing during building; once construction is complete, it is converted to a permanent (take-out) mortgage✓ Correct
CConstruction loans are always at fixed interest rates
DA permanent mortgage can fund construction; a construction loan cannot be refinanced
Explanation
A construction loan provides short-term financing (typically 6–18 months) for building a home or commercial project in Nevada. Draws are made as construction progresses. Upon completion, the borrower obtains a permanent mortgage (take-out loan) to pay off the construction loan.
Related Nevada Finance Questions
- A VA loan is available to eligible veterans and offers:
- In Nevada, a deed of trust differs from a mortgage primarily because:
- What is a graduated payment mortgage (GPM) and who benefits from it in Nevada?
- A buyer's debt-to-income (DTI) ratio of 43% means:
- What is PITI in Nevada mortgage calculations?
- What is the purpose of the Nevada Mortgage Lending Division?
- What is a VA loan and who is eligible in Nevada?
- A balloon mortgage requires:
Practice More Nevada Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Nevada Quiz →