Finance
A NC 'construction loan' typically converts to a permanent mortgage at:
AThe end of the construction period when the certificate of occupancy is issued✓ Correct
BThe start of construction
CThe closing of the land purchase
DWhen the framing is complete
Explanation
A construction loan is a short-term loan that finances building costs during construction; it typically converts to a permanent (take-out) mortgage once construction is complete and a certificate of occupancy is issued.
Related North Carolina Finance Questions
- The Loan Estimate provided under TRID includes all of the following EXCEPT:
- A NC 'cooperative apartment' (co-op) financing differs from condo financing in that the buyer:
- The Truth-in-Lending Act (TILA) requires lenders to disclose the:
- A conventional loan is best described as:
- Private Mortgage Insurance (PMI) is typically required on conventional loans when the down payment is less than:
- An FHA loan in North Carolina requires a minimum down payment of:
- A seller in North Carolina agrees to pay 3 discount points on the buyer's $250,000 loan. How much will the seller pay?
- A 'conforming loan' in North Carolina is one that:
Practice More North Carolina Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free North Carolina Quiz →