Construction to Permanent Loan

Construction to Permanent Loan Program

This program combines the construction/rehabilitation and permanent financing of your project. You qualify for the loan once, lock in the permanent rate, sign one set of loan documents and have as many as 12 months to complete the construction! If the rates drop during construction, your permanent rate can be lowered at no additional cost.

Depending on whether you can fully document your income or not, you can finance up to $3,000,000 and up to 100% of the total costs.  Please call us at 1 (760) 736-7655, with any questions that you may have. Or send an email, for a prompt reply.

How Does It Work? We provide you with a "Construction-to-Permanent" loan program with a one time close to finance the construction of a primary residence or a second home. This means that you sign only one set of loan documents and do not have to worry about re-qualifying, re-appraisals, additional closing costs or signing additional loan documents. During the construction period, interest is charged only on the funds that have been disbursed. When the project is completed, the permanent loan period begins.

Unlike a purchase transaction of an existing home, a Construction-to-Permanent loan involves determining the value of something that has not yet been built! To assist the appraiser and the lender in determining the value of the home after it has been completed, information must provided as to:

• What will to be built or constructed?
• What materials are going to be used?
• How much will the material & labor cost?
• How much did/will the land cost?
• And what is it worth today?
• How much will be spent on plans and permits?

You will have an other very important item to be concerned with... your choice of the general contractor, unless you decide to be an owner builder, who will be awarded the contract and the actual text of the construction contract.

From the general contractor, we will need a builder's application to be completed. This is for your protection as well the investor's, and ensures that he/she is experienced, has a proven tract record, and will be able to perform under the terms of the contract. The fact that we approve a general contractor should not imply that we guarantee his/her work and/or performance.

In addition to the above, we will of course need the standard income and credit documentation that is required in any real estate transaction. Basic documentation requirements are explained in more detail in the "Documentation Requirements" page.

And for a pre-qualification all you need is to complete the simple online application.

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