Loan Origination Activities · 27% of the SAFE exammedium
Correct answer: The full principal and interest payment of the permanent (post-construction) loan
The borrower qualifies based on the PERMANENT loan payment (full P&I), not the construction-period interest-only payment. This ensures the borrower can actually afford the mortgage after construction ends and the full payment kicks in. If a borrower could only qualify on the lower construction-phase payment, they would face payment shock when the permanent loan begins — a risk lenders must avoid.
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