Construction-to-Permanent Loans

Understanding the specific requirements for Construction-to-Permanent Loans is essential for a smooth financing process throughout the construction of your dream home.

Construction-to-Permanent Loan Key Requirements

• Detailed Construction Plans: A comprehensive set of construction plans, including detailed specifications, is typically required for loan approval. This ensures that the lender understands the scope of the construction project.
• Builder Contracts: Contracts with the builder outlining the project timeline, costs, and responsibilities are essential. Lenders may require these documents to evaluate the feasibility of the construction.
• Construction Budget: A detailed budget for the entire construction process, covering land acquisition, materials, permit fees, labor, and other related costs, is a crucial requirement.
• Inspections: Lenders may conduct inspections at various stages of the construction to ensure that the work is progressing as planned and in compliance with the approved plans.

Our Mortgage Lenders at First Bank & Trust are here to guide you through the specific requirements for Construction-to-Permanent Loans and help you navigate the financing process.

Construction-to-Permanent Loans come with unique rate structures that consider the construction phase and the subsequent permanent mortgage. Here's an overview of the key features related to rates:

Construction-to-Permanent Loan Key Rate Features

• Interest-Only During Construction: During the construction phase, borrowers may have the option to pay only the interest on the loan. This can provide financial flexibility during the building process.
• Transition to Fixed Rate: Upon completion of construction, the loan transitions to a fixed-rate mortgage, providing stability in monthly payments for the remainder of the loan term.

Competitive Interest Rates: Construction-to-Permanent Loans often come with competitive interest rates, ensuring that borrowers have access to favorable terms.

Mortgage Tools

• Loan Calculator: Use our online loan calculator to estimate monthly payments, helping you plan and budget for your Construction-to-Permanent Loan.
• Application Checklist: Access a comprehensive application checklist that outlines the documents and information needed for a smooth loan application process.
• Builder Network: Explore our network of approved builders to find experienced professionals for your construction project.
• Expert Guidance: Connect with our Mortgage Lenders who specialize in construction financing. They can provide expert guidance tailored to your specific needs.

First Bank and Trust is dedicated to providing the tools and support you need to finance your dream home construction project. Contact our Mortgage Lenders to explore the available options and kickstart your journey to homeownership.