Which of the following is not true about construction-to-permanent mortgages?
A) Bridge financing is provided by lender over the time frame required by the borrower to purchase land and construct the house.
B) Both interest and principal payments are made until construction is completed.
C) Loan is financed in increments as construction payments have to be made.
D) On completion of the construction, loan balance is rolled over into the type of mortgage contract desired by borrower.
Correct Answer:
Verified
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