Construction-To-Permanent Financing Details
- Up to a 12-month duration from time of construction loan conversion to permanent loan conversion.
- Buyer closes on the lot purchase using funds from the construction loan. Down payment is paid at this closing along with any application closing costs.
- Monthly payments on the construction loan are interest-only based on the outstanding principal balance of the construction loan. As the builder draws on the construction loan, the outstanding principal balance increases, and the interest accrual is adjusted accordingly. For preferred Gonyea Homes and Remodeling clients, interest payments may be deferred until project completion.
- The builder will typically make 4 draws during the term of the construction loan.
- Various long-term lock options are available to help hedge interest rate risk during the build process.
- At project completion, the construction loan is converted to permanent financing. Any applicable accrued interest is collected, along with escrows for tax and insurance. Regular monthly payments commence according to terms of permanent loan product.
- All secondary market loan programs available for permanent loan (ARM, Fixed, Jumbo, Conforming).
Vice President | Tradition Mortgage
Questions? Concerns? Connect with Dylan Niska! Dylan has been a partner with Tradition Mortgage since its inception in 1998. As a loan officer, he has developed a large referral network based on trust and professionalism. Reach out to Dylan today!
Office: (952) 252-4680 | Cell: (612) 396-7272 | NMLS#342545