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Construction-To-Permanent Loans

What is a Construction-To-Permanent Loan?

A construction-to-permanent loan is a mortgage. Depending upon which program you choose and qualify for, your initial construction phase may offer a term option of 6, 9, or 12 months so you can request draws to pay for your materials, supplies, the builder, and sub-contractors during construction. During this construction period, you are required to make interest only payments based on the outstanding amount drawn from your construction-to-permanent loan. Once your home is completed, your principal and interest payments begin on the full amount of the mortgage.

Construction-To-Permanent Benefits:

• Flexible Draws/Advances Schedule (disbursed in 24-48 hours)
• Interest only payments during construction
• Purchase your land and build all in “one loan”
• Land owned (with balance due) can be rolled into loan
• One Closing (one set of closing costs)
• No re-qualification or updating loan documents upon home completion
• Competitive low rates
• Low down payment programs available