Under a construction loan, the final payment to the borrower is generally released when:

In the context of a construction loan, the final payment to the borrower is typically associated with the completion of the project in accordance with the terms of the loan and the legal requirements surrounding construction financing.

The correct answer, which pertains to the lien period expiring, emphasizes the importance of ensuring that all potential claims against the property are resolved before the lender releases the final payment. After construction is completed, contractors, suppliers, and subcontractors may have the right to file liens against the property if they have not been paid. The expiring of the lien period means that there is no longer a risk of such claims, providing the borrower with assured ownership free from encumbrances linked to unpaid construction costs.

While the project's completion or a final inspection is important in the overall process, the special concern with the lien period addresses the legal protection of both the borrower and the lender. The timing of final payment release hinges on the resolution of any potential disputes or claims linked to the construction process, making the expiration of the lien period a critical step in safeguarding interests before finalizing the financial transaction.