construction to Permanent loan is a single loan that combines
both a construction loan and a permanent mortgage which converts
after construction has been completed and the certificate of
occupancy has been issued. Typically a construction to
permanent loan will result in lower fees and only a one time
closing cost and set of loan documents for both the construction
and permanent phase of the home rather than two separate loans
(construction and mortgage).
construction to permanent loans the construction phase can vary
from 6, 9, or 12 months and the permanent loan is available over
a 15 or 30 year term. In addition to the typical mortgage
loan documents you will most likely need to produce the
information on the builder, trade references, workman's
compensation and general liability insurance, the builder's
license, the construction agreement between the builder and the
borrower, and the construction draw schedule.