Finance
A construction-to-permanent loan is used to:
AFinance only the land purchase
BFinance construction with a single loan that converts to a permanent mortgage upon project completion✓ Correct
CRefinance an existing home for renovation
DFund commercial tenant improvements
Explanation
A construction-to-permanent (or one-time close) loan funds construction and automatically converts to a permanent mortgage when the project is complete. It eliminates the need for two separate loan closings and reduces transaction costs.
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