Sometimes One is Better Than Two. One loan. One closing.Especially when it comes to construction, renovation or rehabilitation financing.
Designed for licensed contractors working in new construction, home renovation, or teardowns with rebuilds, our Construction-Permanent (CP) Loan allows all financing (including land acquisition) to happen under one loan. That’s one set of documents and one closing, saving your buyers time and money.
Two Phases. One Loan.
Here's How It Works:
- The loan is closed in the buyer’s name with interest-only payments during the construction phase.
- The construction phase of the loan is designated for a specific amount of time.
- During construction, funds are dispersed to either the client or builder directly.
- Upon the completion of the home, along with meeting the conversion requirements, the loan then converts to the permanent phase.
Property types that are eligible for CP Financing include:
- Single Family
- Detached Primary Residences
- Second Homes
Project types that are eligible for CP Financing include:
- New Construction
- Home Improvements/Renovations
- Tear Downs
During conversion to the permanent financing, the borrower may be eligible for a FREE, one-time Float Down Option of the interest rate.
The borrower may exercise the rate cap with float down option by asking their Construction-Permanent Certified Loan Originator to see if rates are better and float down the rate.
This means that if interest rates fall before reaching the permanent phase of the loan, we’ll apply the new rate to your loan terms!
You've Got Questions? We've Got Answers!
Contact one of our Certified Loan Originators below to help get you started!