New construction financing
Construction-to-permanent financing can coordinate the construction period and long-term mortgage, but the structure, draw process, builder review, and conversion terms vary by program.
Plain-language overview
A construction-to-permanent loan is designed to finance eligible construction costs and then transition into permanent mortgage financing. Some programs use one closing and others use separate construction and permanent transactions.
Guidelines are not universal. Program availability and the details that apply to a specific borrower or property must be confirmed at the time of review.
Possible fit
The process
Before choosing
Potential advantages
Potential drawbacks
Avoidable problems
Frequently asked questions
These answers are educational. Your scenario must be evaluated under the current program and lender requirements.
No. One-time-close programs exist, while other structures use separate construction and permanent closings.
Some programs may recognize eligible land equity. Ownership, liens, value, seasoning, and program treatment must be reviewed.
Funds are generally managed through a draw process tied to completed work, inspections, and the lender's procedures.
Understand first. Apply when ready.
I'll explain what may fit, what may not, and what information we need to know next.
