Exam 16: Financing Project Development

Permanent loans provide the money for a single permanent mortgage loan and are usually provided by commercial banks or mortgage banking companies.

Mini-perm loans usually refer to financing:

Under a triparty buy-sell agreement, the construction lender will accept funding from the first party willing to repay the construction loan.

Lenders typically finance the development of a project as a percentage of completed appraised value, including the price of the site.

Loans made under the assumption that markets will turn around are referred to as spec loans.

Besides an estimate of costs, a construction loan submission package includes many other components. Which of the following is NOT one of those components?

What term applies to third-party financing that is used between funds advanced by the permanent lender and funds needed to repay the construction loan?

In comparison to permanent financing, the rates and rate variability for a construction loan would be: Interest Rates Interest Rate Variability

A standby commitment is:

Permanent financing commitments usually allow the lender to approve major leases.

Permanent funding commitments usually contain many funding contingencies. Which of the following typically is NOT one of those contingencies?

Even after obtaining permanent financing, a developer still maintains the right to alter a project's design or the level of expenditures.