Apply Now

Construction-to-Permanent Loan

Building a new home often involves getting one loan for the construction and then another loan to pay the construction loan off. Fortunately, this process can be streamlined through a construction-to-permanent loan.

Build a Brand New Home

A construction-to-permanent loan is often the simplest and most cost-effective way to finance building a home from the ground up.

Perhaps you’ve spent months or even years searching real estate listings without finding “the One,” or maybe you’ve always known that buying an existing home just wouldn’t suit you. One way or another, you know your future lies in fresh new construction.

One Loan, One Closing

Construction-perm loans can be long or short, fixed or adjustable. All the loan terms are set when construction begins.

With a construction-perm loan, you close on the loan and lock your interest rate when construction begins. During construction, you only have to pay for the interest on the money that has been disbursed, and then when the home is finished, the loan balance is automatically rolled into a mortgage, so you don’t have to pay for a second set of closing costs.

Is a Construction-to-Permanent Loan right for you?

Speak with one of our experienced senior loan officers today about your loan options.

Choosing the Right Loan

Scenario 1

Richard did a lot of research when he started thinking about buying a home, and when he learned about all the costly and time-consuming maintenance that comes with having your own property, he almost changed his mind about becoming a homeowner at all. Then a friend pointed out to him that if he hired a reputable general contractor to build a home for him, he wouldn’t have to worry about doing major repairs or replacing home systems for many years. A construction-perm loan was just what he needed to make it possible.

Benefits of Building New

One of the nice things about buying a home is that you get to paint the walls however you want, whenever you want. On the other hand, one of the nice things about building a home is that you get a say in where the walls will be in the first place!

In addition to the unmatched level of creative freedom you get when you build rather than buy, new construction also offers these benefits:

  • Modern building codes will ensure a safer and more energy-efficient home.
  • Your insurance costs may be cheaper thanks to the higher building standards.
  • You won’t have to replace any major appliances or home systems for a long time.
  • It will be much easier to sell or rent your home out, if you choose to.