What Are Constuction Perm Loans_

What Is A Construction Perm Loan?

What Is A Construction Perm Loan? Unlimited Mortgage Lending
Like the man says, a’blueprint is not a house – so conventional home mortgages don’t apply to construction projects. However, ‘most blueprints become houses ‘- so loans that cover construction, then convert to permanent mortgages or ‘construction perm’ loans are fairly common. The construction loan phase is frequently a variable-rate loan, with scheduled loan ‘draws’ to match construction stages. Upon completion – usually a certificate of occupancy – commonly called a ‘CO’ – ‘the construction loan is converted to a permanent mortgage. The advantage of construction perm loans is that you only need ONE application and ONE closing. Compare interest-rate trends to your construction schedule (and assume construction delays) to evaluate if a rate-lock agreement on the permanent mortgage stage makes sense. And weigh your construction-loan terms and their short-term cost against your mortgage rate, and its probable long-term costs. Compare lenders to get the best ‘construction perm’ package for your situation.  
Share post
Share on facebook
Share on twitter
Share on linkedin

Check if you Qualify for a Loan

Before you start shopping for a home, you need to know exactly how much you can actually qualify for.

Answer 6 simple questions to make sure that you meet the simple basic requirements to qualify for a mortgage.  Once in our “Exclusive Pre-Qualifying Mortgage Calculator,”  all you have to do is plug in your numbers to see if you qualify.  This calculator is based on the income, debt, and purchase price that you enter and will show you if you qualify or not for a Conventional Mortgage Loan or an FHA (Federal Housing Administration) Mortgage Loan.

Search Posts

Recent Posts


[gravityform id="3" title="false" description="false" ajax="true"]

Have a Question? Talk to Our Expert.

Unlimited Mortgage Lending is here to help. If you have any questions about your dream house loan program, never hesitate to call.

Skip to content