Finance
A construction loan in NJ is characterized by:
AFixed interest for the entire build period
BFunds disbursed in draws as construction progresses, converting to a permanent mortgage upon completion✓ Correct
CGovernment insurance required for all draws
DA 30-year amortization schedule from day one
Explanation
Construction loans are short-term, interest-only financing disbursed in stages during construction; they typically convert to a permanent mortgage (take-out loan) at project completion.
Related New Jersey Finance Questions
- The debt service coverage ratio (DSCR) is used by NJ commercial lenders and is calculated as:
- A NJ lender who charges a prepayment penalty on a residential mortgage loan must disclose this in the:
- An adjustable-rate mortgage (ARM) in New Jersey poses the risk to the borrower that:
- In NJ, a 'blanket mortgage' covers:
- In NJ, 'mortgage fraud' includes misrepresentation on a loan application such as inflating income. NJ treats mortgage fraud as:
- A NJ seller agreeing to pay mortgage points on behalf of the buyer is offering a form of:
- A NJ homebuyer submits a mortgage application and the lender pulls a tri-merge credit report. The lender uses which credit score for underwriting purposes?
- A NJ mortgage broker is best described as a person who:
Practice More New Jersey Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New Jersey Quiz →