|
A Construction to
Permanent Loan is a "One Time Closing
Loan" available to Borrowers who have an
agreement with an "approved" General
contractor/builder to build their single
family detached personal residence.
Borrowers will have one closing and will
sign one set of loan documents for both
the construction and permanent phase of
the home. Our lenders provide the borrower
with the loan amount to construct their
new home with financing up to 95% of the
value of the home.
The Borrower has the
choice of using the "Prime Plus" or the
"Fixed Rate" options in the construction
phase. With either option, the permanent
rate can be locked in up front and
guaranteed with today's rate. When using
the "Prime Plus" option, the Borrower does
not have to lock and may choose to "float"
or use the "Range Protector" program. When
using the "Fixed Rate" optinon, the
Borrower must agree to lock his interest
rate for the entire construction period.
The following loan
programs are available for Construction to
Permanent mortgages: 30 year Conventional,
15 year Conventional, 7 year Balloon, 5
year Balloon, 30 year Jumbo, and 15 year
Jumbo.
Term
Generally, the
construction phase varies from 6 to 9 to
12 months while the permanent loan is
amortized over a 30 or 15 year term.
Eligibility
The following homes
are eligible for a Construction to
Permanent Loan:
Single family one-unit
detached residences.
Detached dwellings in
Planned Unit Developments (PUDs).
Manufactured homes
permanently affixed to the property.
|
