Construction- to- Permanent Loans


A Construction Permanent Loan makes new home financing simple. There’s just one loan application and one closing. Primary or vacation home, you can use the construction loan to build either.  With a construction-to-permanent loan, you can combine your lot and construction financing in a single loan. And when your home is complete, the lender simply modify your construction loan to a permanent mortgage.


Best If You 

  • Want to build your primary or vacation residence, or make significant      renovations to your existing home
  • Need to buy the lot and finance the construction


  • Affordable, interest-only payments during construction
  • Flexible fixed and adjustable-rate loan options
  • No prepayment penalties
  • One upfront closing with one set of closing costs provides the financing for the lot, construction and mortgage



A construction loan is a short-term loan—usually about a year—used to fund the construction of your home, from breaking ground to moving in. With a construction-to-permanent loan, your construction financing simply converts to a permanent mortgage when your home is complete. During construction, you only pay the interest on your loan, and your payments may be tax-deductible.  And with one upfront closing and one set of closing costs, you'll save time and money.

Read more about VA Loans for building here

Note:  The information provided should not be considered as tax or legal advice. Please consult with your tax advisor and/or attorney regarding your individual circumstances.