What is the name of the permanent loan used at the end of a construction loan?

The term "take out loan" is used to specifically describe the permanent financing that replaces a short-term construction loan. This type of loan allows the builder or borrower to pay off the construction financing once the project is completed. Essentially, the take out loan serves as a long-term mortgage, providing the necessary funds to convert from a temporary construction loan into a stable, permanent loan structure. This process is critical because it offers a way to secure lower interest rates and longer repayment terms, making it financially manageable for homeowners or builders in the long run.

A take out loan is usually arranged before the construction is finished, ensuring that the borrower has the financial resources at the right time. Other options presented, such as "end loan" and "term loan," may refer to similar concepts, but they are not as widely recognized as the designated financing that primarily follows a construction loan process. The "crossover loan" term describes a different financial instrument, typically used in other contexts not related to construction financing.