Finance
A 'construction loan' in NC typically converts to a permanent mortgage upon:
AThe issuance of a building permit
BCompletion of the construction and a certificate of occupancy✓ Correct
CThe first draw of funds
DThe end of the first calendar year
Explanation
Construction loans are short-term, interest-only loans that fund the building process. Upon completion (evidenced by a certificate of occupancy), the construction loan is typically paid off and replaced with a permanent mortgage (end loan) or converts to permanent financing.
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