Today officially marks the first day of fall. The start of a new season is a perfect time to start a new chapter in your life. With historically low-interest rates should start considering the possibility of building a custom home. In this scenario, a construction to permanent loan is often used. If interested in learning more, please continue reading.
What is a Construction to Permanent Loan?
This type of loan combines two loans into one. It is important to note that you do not have to requalify for the actual mortgage after the home has been built.
How Does the Loan Work?
This type of loan allows for your lender to release cash to the builder to fund each phase of construction. Throughout the building process, you may have the option of making interest-only payments.
Mortgage Interest Rates
Affected by the real estate market and the entire economy, interest rates are constantly changing. A construction to permanent loan requires only one loan closing. Therefore, the homeowner is able to lock in the interest rate for the actual mortgage before the construction of their home has been started.
Do you have questions or want to get started? We are happy to share our preferred lender’s list to start you on the path to building your Christopher Burton Luxury Home.