After construction has been completed, a developer may decide to seek additional financing. If current interest rates are relatively high, but the developer expects them to decline in the near future, the developer would most likely seek financing in the form of a:
A) subordination agreement
B) miniperm loan
C) take-out commitment loan
D) floor loan

Question

Quizplus · Accepted Answer

A miniperm loan is a type of financing that is often used when long-term rates are high but expected to fall. It provides short to medium-term financing, allowing the developer to refinance at a later date when rates are more favorable.

After Construction Has Been Completed, a Developer May Decide to Seek