Finance
In South Dakota, 'construction-to-permanent financing' allows a borrower to:
AFinance only land acquisition for future construction
BUse a single loan for both the construction phase and permanent long-term mortgage, converting automatically at construction completion✓ Correct
CObtain financing for existing construction that needs major renovation
DAvoid all closing costs on new construction
Explanation
A construction-to-permanent loan (also called a one-time close or single-close construction loan) provides financing for both the construction period and then converts to a permanent mortgage upon completion. This eliminates the need for separate construction and mortgage loans and two sets of closing costs.
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