Our construction to permanent (CP) loan (often referred to as a home construction loan) combines construction financing and the permanent mortgage into one loan, so you save by paying only one set of closing costs. Consider this loan a one-time close! Plus, you’ll have the peace of mind that comes from locking in your interest rate before construction begins.
If you’re unfamiliar with the CP process, check out these helpful links or contact our construction team!
In the beginning, there will be two closings happening simultaneously: the closing on your land (if you don’t already own it) and the closing for the construction loan. Once the home construction is complete, we will conclude the draw process with your builder so you can move into your new home. The loan will convert to a traditional mortgage after the 12-month, interest-only period is complete, or sooner in some cases.
After your approvals, all you need to do is finalize your blueprints. The process is very hands-off for you. Your builder uses your loan to make draws, or transactions, to purchase materials in order to build your home. The bank also handles draws by working directly with your builders. During the 12-month construction period, the loan requires interest–only payments, keeping your payments low. And, you will not pay interest on any funds not drawn during the build.
Our team is ready to answer questions and help you navigate the construction process so you can achieve your dream home build.