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
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.
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.