why our team loves Construction-To-Permanent Home Loans
We love C2P loans because they give our buyers one loan, one closing, and less stress. You can lock in your rate early, avoid surprises, and keep your build on budget without bouncing between two different lenders or loan types.
Construction-to-Permanent Loans At A Glance
A Construction-to-Permanent loan finances your new build, then automatically converts that loan into a traditional mortgage once construction ends. You’ll make interest-only payments during the build phase, and once you move in, your loan seamlessly becomes a standard fixed-rate or adjustable-rate mortgage.
Highlights
- One-Time Close: Finance the build and permanent mortgage all in one.
- Interest-Only During Construction: Make lower monthly payments while the home is being built.
- Lock Your Rate Upfront: Lock in your long-term mortgage rate before construction begins.
- Smooth Transition: Converts to a permanent mortgage without second approval or closing.
- Covers More Than Just The Build: Can include land purchase, site prep, permits, and even appliances.
- Build Your Way: Works for custom homes, semi-custom builds, or major renovations.
Construction-to-Permanent Loan Guidelines
- Down Payment: Typically 5%–20% depending on program and borrower profile.
- Occupancy: Primary residence required for most programs.
- Eligible Properties: New construction and some renovations.
- Draw Schedule: Distributed to builder in phases based on project milestones.
- Builder Approval: Licensed, approved builder required.
Pros of Construction-to-Permanent Loans
- One Loan, One Closing: Saves time, money, and paperwork.
- Protects You From Market Fluctuation: Lock in your mortgage rate early.
- Great For Budgeting: Know your long-term payment from the start.
- Funds More Than Just the House: Can cover land, construction, and soft costs.
- Custom Homes: Great fit for buyers building on their own lot or working with a preferred builder.
Best for…
Buyers looking to build on their own land
Borrowers who want to avoid multiple closings
Buyers who want an all-in-one solution for the financial side of building a home
Free Guides & Resources
Our favorite kind of buyer? A confident one. Brush up on your loan knowledge, get an accurate quote, and let's get to it.
