Q. What is a construction to permanent loan?
A. A construction to permanent loan provides the financing for the construction of your new home over a period of 12 months. Construction loans only require one settlement with a requirement for document modification to convert to the permanent term following the end of the construction period.

Q. What will I have to pay during the construction phase?
A. You will be responsible for monthly interest billings on your construction line of credit unless other arrangements are made.

Q. What are the steps in getting a construction to permanent loan?
A. Your lender will obtain an approval for your permanent mortgage. Once we have a full approval (with appraisal) you will choose your construction loan. During the construction process you may change the terms of your loan (fixed rate vs. adjustable rate, loan program). With the variety of loan programs available, you have the option of switching to the program that best suits your needs. During the construction process you will be responsible for paying monthly interest on your construction loan. Once your house is complete you will sign a modification agreement. This spells out your permanent mortgage terms (loan amount, rate, program, etc.)

Q. Can I make changes to the plans and specifications during the construction period?
A. Absolutely! Any changes that may alter the value of your home must be approved by your lender and possibly re-evaluated by the appraiser.

Q. What kind of financing is available?
A. There are a variety of loan programs: First time home buyers, fixed adjustable, FHA, VA, VHDA, conventional and interest only.

Q. Can my closing costs be added to my loan?
A. This is very possible. It depends on the loan program that you have qualified for. Lots of times the closing costs can be added to your loan amount.