A Construction to Permanent Loan is a "One Time Closing Loan" available to Borrowers who have an agreement with an "approved" General contractor/builder to build their single family detached personal residence. Borrowers will have one closing and will sign one set of loan documents for both the construction and permanent phase of the home. Our lenders provide the borrower with the loan amount to construct their new home with financing up to 95% of the value of the home.

The Borrower has the choice of using the "Prime Plus" or the "Fixed Rate" options in the construction phase. With either option, the permanent rate can be locked in up front and guaranteed with today's rate. When using the "Prime Plus" option, the Borrower does not have to lock and may choose to "float" or use the "Range Protector" program. When using the "Fixed Rate" optinon, the Borrower must agree to lock his interest rate for the entire construction period.

The following loan programs are available for Construction to Permanent mortgages: 30 year Conventional, 15 year Conventional, 7 year Balloon, 5 year Balloon, 30 year Jumbo, and 15 year Jumbo.

Term

Generally, the construction phase varies from 6 to 9 to 12 months while the permanent loan is amortized over a 30 or 15 year term.

Eligibility

The following homes are eligible for a Construction to Permanent Loan:

Manufactured homes permanently affixed to the property.