Finance
In New York, a 'construction loan' typically converts to a permanent (take-out) mortgage:
AAfter the first year of construction
BUpon substantial completion of the project, when the borrower meets specified conditions (such as a certificate of occupancy and minimum lease-up requirements for commercial projects)✓ Correct
CWhen the lender requires
DAfter 36 monthly interest payments
Explanation
A construction loan in New York is short-term financing for the construction phase of a project, with interest-only payments and draws based on construction progress. Upon substantial completion (receiving a certificate of occupancy, meeting stabilization requirements for commercial projects), the construction loan is converted to or paid off by a permanent (take-out) mortgage.
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