Finance
In New Mexico, a 'construction-to-permanent loan' (single-close loan) works by:
AProviding only construction financing that must be refinanced when construction is complete
BConverting the construction loan into a permanent mortgage automatically upon project completion✓ Correct
CRequiring two separate closings—one for construction and one for permanent financing
DBeing available only for commercial construction
Explanation
A single-close construction-to-permanent loan finances construction and then converts to a permanent mortgage (usually a fixed or adjustable rate) when construction is complete—eliminating a second closing and its costs.
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