What is a Construction-to-Perm Home Loan?
A Construction to Permanent home loan provides financing for the purchase of a property, and the construction of a home on said property, and actually converts into a permanent mortgage loan once the home construction is complete.
Many homebuyers prefer this loan type because they don’t have to select and be approved for two different loans — first a construction loan and then a permanent mortgage loan — and they can avoid paying closing costs more than one time. These loan types require a 5% down payment and offer a $1,000,000 maximum loan amount.
Construction-to-permanent home loans are also typically easier to qualify for than traditional construction loans because they are less risky for the mortgage lender. These loan types also allow the homebuyer or builder to make interest-only payments while the home is being constructed and then switch to their permanent monthly mortgage loan payments after the build is complete.
Construction-to-Permanent Home Details:
- Build your dream home
- $1,000,000 maximum loan amount
- 5% down payment
If you are interested in applying for Construction-to-Permanent Home Loans with The Mortgage Firm North Central Florida, make sure to view our loan checklist and contact us with any further questions!