Construction permanent financing, also known as a “construction-to-permanent loan,” combines the benefits of a construction loan and a traditional mortgage into a single package. It allows you to finance both the construction phase and the permanent financing of your new home with one loan, streamlining the process and offering several distinct advantages.

One-Time Close: With this type of loan, you close on your loan just once, saving time and reducing paperwork.

Flexible Terms: Enjoy a wide range of terms to suit your specific financial needs, including fixed or adjustable rates.

Interest-Only Payments: During the construction phase, you can make interest-only payments, conserving your budget.

Lower Down Payment: Construction permanent loans often have lower down payment requirements compared to traditional construction loans.

Approval Process: The builder and the project must meet certain criteria, which can add additional steps to the loan approval process.

Higher Costs and Rates: Construction permanent financing mortgages may come with slightly higher costs and interest rates due to the added complexity of the loan structure.

The builder and project approval process is a crucial step in obtaining a construction permanent loan. This process typically involves the following:

Builder Qualifications: The builder must meet specific qualifications, including experience, financial stability, and a proven track record of successful construction projects.

Project Plans and Budget: The lender will review detailed project plans, specifications, and a budget to ensure they align with your loan amount.

Inspections: The lender may conduct periodic inspections to verify the progress of the construction and ensure it aligns with the approved plans.

Construction permanent loans are often considered a choice for elite borrowers due to their stringent qualifications. To be eligible, you typically need to meet the following criteria:

Higher Reserves: You may be required to have a significant amount of savings or reserves to cover unexpected costs during construction.

Lower Debt-to-Income (DTI): Your DTI ratio is generally expected to be lower than for traditional mortgages.

Higher Credit Scores: Lenders often require a higher credit score compared to traditional mortgage loans.

Expert Guidance: Our team of mortgage experts is well-versed in construction permanent financing and can provide the guidance you need throughout the process.

Local Support: As your local partner, we understand the unique real estate landscape in your area and can provide personalized guidance.

Dedication to Your Vision: We’re committed to helping you turn your dream home into a reality, and we offer tailored solutions to meet your specific needs.