Question

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:________.

Answer 1

B. Miniperm loan

Step-by-step explanation:

A mini perm loan is a form of temporary loan of financing that is used in commercial projects before those commercial projects becomes profitable. It is a temporary loan that is used to pay off construction loan and it is typically payable in three to five (3 - 5) years. It is a short term loan also used in the acquisition of investments properties. In this scenario, the developer would most likely seek financing in form of mini-perm loan.