Finance
A construction-to-permanent loan is a financing arrangement in which:
AThe borrower takes out separate loans for construction and permanent financing
BA single loan covers the construction phase and automatically converts to permanent financing upon completion✓ Correct
CThe lender funds construction costs directly to contractors
DThe builder provides seller financing during construction
Explanation
A construction-to-permanent loan (or one-time-close loan) covers both the construction phase and converts automatically to long-term permanent financing after construction is complete, saving the borrower from applying for two separate loans.
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