Sergio Davis

Loan Programs

Construction-to-Permanent Loan

Build a new home with one loan that funds construction and converts to a permanent mortgage.

Overview

A construction-to-permanent (C-to-P) loan covers the cost of building a home and then automatically converts to a standard mortgage once the home is complete. You close once, lock your rate up front (or float it), and pay interest-only on draws during the build.

It's a clean alternative to two separate loans (a short-term construction loan plus a takeout refinance) and saves on closing costs. Lenders look closely at the builder, the budget, the plans, and your overall financial profile, since they're committing to two stages of risk in a single transaction.

Who it's for

  • Buyers building a custom or semi-custom home
  • Lot owners ready to start construction
  • Move-up buyers building rather than buying existing inventory
  • Owners tearing down and rebuilding on an existing lot

What's typically reviewed

  • Approved licensed builder with track record
  • Detailed plans, specs, and itemized budget
  • Land ownership or purchase contract
  • Borrower credit, income, and reserves
  • Appraisal based on plans and finished value

This is a general description, not a guarantee of approval. Specific requirements vary by lender and program. Final qualification is determined during underwriting.

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