A construction-to-permanent loan is a "single-close loan" that includes the construction loan and the permanent loan in one loan closing. With some companies, two loans are required—one for construction and one for permanent financing. A single-close construction-to-permanent loan combines both construction and permanent financing into one loan. One closing means customers will sign one set of loan documents for both the construction loan and permanent mortgage of the new home. Construction-to-permanent loans are available for owner-builders using COBS Homes Services and to borrowers who have a Building Contract with an "approved" General Contractor. The construction-to-permanent loan can finance up to 95% of the value of the home.
Construction-to-permanent loans are available with full documentation and stated income options, but assets must be verified. The programs can be adjustable with 1- year, 3- year, and 5-year options as well as 15- and 30-year fixed loans. You can lock your interest rate for the construction-to-permanent loan at construction, knowing what your permanent mortgage interest rate and payments will be. A roll-down option protects you if the ratios are lower when you complete your home. Apply now!
CONSTRUCTION-TO-PERMANMENT LOANS 620 minimum credit score Fully Documented Loan and Stated Income/Verified Assets Approvals
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Construction-to-permanent mortgages can be utilized to:
Construction-to-permanent loans can include land purchase or payoff, loan closing costs, construction costs, and interest reserves—all built into one loan—which is then, easily and seamlessly, modified to a permanent mortgage.
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