Construction to Permanent
Found the right lot and want to build a home on it? Our low cost construction to permanent financing eliminates the time and expense of obtaining separate loans for land, construction expenses and a permanent mortgage.
Unlike a construction loan, with a construction-to-permanent loan, you can finance the purchase of land, construction of your new home, and a permanent mortgage at one time. This saves you money and time by having just one loan approval and one loan closing. It also gives you the peace of mind to know that you already have a permanent mortgage in place before your new home is finished. You can even lock in an interest rate before construction begins.
When compared to the added costs and hassles of having to get separate loans for the land acquisition, construction costs, and permanent mortgage, a construction-to-permanent mortgage really makes sense.
If you already own the land, our construction-to-permanent loans make even more sense because we can use equity in your land as down payment for the construction-to-permanent loan. As long as your current mortgage allows early payoff, rolling your land loan into our construction to permanent loan is a simple process.
Construction to Permanent Features:
Our Construction-to-Permanent Mortgages are available in Florida for a home that you intend to live in as your primary residence, a second home and in some cases investment property.May be used to build a home from the ground up or, to finish building a home that is currently under construction.
You can select from fixed-rate or adjustable rate mortgages. We offer terms as long as 40 years! Whatever loan you select, there will be just one set of closing costs and you can lock in the interest rates on the construction phase and the permanent mortgage at the same time.
This mortgage can also cover the cost of buying the land on which your house will be built. The construction phase can be financed for between 6 to 18 months. During construction, you pay only the interest on the funds you actually receive. This means lower monthly payments as your home is being built. Or, with the interest reserve option, you can delay paying interest while you continue to pay the mortgage on your existing home.
You can borrow up to 95% of the land acquisition plus construction cost of the home, which means your down payment may be as low as 5% of the amount of the mortgage. We also have niche programs offering 100% construction to permanent financing.
For the typical home, we offer 5 draw and 6 draw construction-perm options. What this means is at either 5 or 6 points in the construction process (We also do variable "Common Sense" draw schedules), we will verify that the builder (you may be the builder) has completed the work for that phase of construction. Once verified, we will deliver a check to the builder for work completed in that construction phase. Once the final phase is completed, you will sign a modification to the original mortgage which essentially converts your loan from the interest only construction loan you had been paying on and into a permanent mortgage.
No Plans, No Specs, No Builder? No Problem!
Find the perfect lot but don't have plans, specs or a builder? Our Purchase Plus (P+) construction-to permanent Program may be right for you. Our P+ program is available to customers wishing to:
- Renovate the home they are buying
- Tear down and rebuild on a property
- Buy a piece of land and build a new home
100% Financing Construction to Permanent Features
- No Money Down!
- Six Months to Complete Plans!
- An Additional 12 Months to Complete Work
- One Closing for the entire construction-to-permanent process!
Learn More
To learn more about our construction-to-permanent programs, give us a call or, contact us online.
Contractor Selection
Why Contractors Like our construction-to-permanent mortgages
Sample construction draw Schedule
Sample construction fee Schedule
Customers who have found the right piece of property but are not yet ready to build should consider our low cost vacant land / lot loans .
Customers owning a home and who wish to finance home improvements should consider our rehabilitation loans, home equity lines of credit ( HELOC ) and cash-out refinancing.