Finance Your Construction and Home Purchase in a Single Loan

Are you ready to build your dream home? Our construction to permanent loans allow you to easily finance the entire new construction process with a single loan. This loan can be used for land acquisition, materials, permit fees and other construction related costs. Once construction is complete, the single-close loan transfers to a traditional mortgage.

Are you looking for a loan with a low down payment? We service FHA construction-to-perm loans. We also have VA construction-to-permanent loans for active duty military, veterans and their spouses. At First Bank & Trust, we have a number of flexible financing options to cover your home construction needs. We have experienced Mortgage Lenders in Virginia, Tennessee or North Carolina, ready to assist you with financing your home construction project.

Embarking on the journey to build your dream home requires understanding the eligibility criteria for Construction-to-Permanent Loans. These loans offer a seamless transition from construction financing to a traditional mortgage. Here's an overview of eligibility considerations:

Construction-to-Permanent Loan Eligibility Criteria

  • Creditworthiness: Applicants must meet creditworthiness standards to qualify for a Construction-to-Permanent Loan. A stable credit history enhances eligibility.
  • Income Verification: Demonstrating a stable and sufficient income is essential for loan approval. Lenders assess income to ensure borrowers can manage payments during both the construction and mortgage phases.
  • Down Payment Capability: While Construction-to-Permanent Loans provide financing for the entire construction process, applicants may still need to meet down payment requirements. The down payment amount can vary based on factors such as creditworthiness and loan program.
  • Builder Approval: Working with an approved and experienced builder is often a requirement for Construction-to-Permanent Loans. Lenders may have a list of approved builders or specific criteria for builder selection.

Connect with our experienced Mortgage Lenders at First Bank & Trust to explore your eligibility for a Construction-to-Permanent Loan in Virginia, Tennessee, or North Carolina.

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.

Competitive Construction-to-Permanent Rates

At First Bank & Trust, we offer competitive competitive-to-permanent loan rates for the life of your loan. Whether you need a 30-year fixed loan or simply to refinance, our local representatives will find a financing solution that works for you.

Since mortgage interest rates change frequently with the market, it’s best to work with your local representative to get your custom rate quote.

Get your custom rate quote. Call or apply today.

Choose Your Loan

Construction vs. Construction-to-Permanent

There are key differences between a temp construction loan and construction-to-permanent loan:

Temporary Construction Loans

  • 12-month loan term (temporary) with no commitment for permanent financing
  • Interest-only payments until loan maturity
  • Will require a refinance to the permanent loan, with new underwriting to be completed, possible new appraisal, updated title work and will be based on mortgage rates at that time (for better or worse).

Construction-Permanent Loans

  • 12 months of interest only payments, automatically converting to principal and interest payments on month 13
  • No need for a 2nd closing (unless borrower chooses to refinance for better rate, etc) – saves the borrower money by not having a 2nd set of settlement costs
  • Acts as a hedge against continual rising interest rates (rate is essentially set for 8 years before adjusting – the initial 12 months and then the next 7 years during the permanent loan)
Team Construction Engineers Working At Construction

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