Construction to Permanent (C2P) FAQ’s

What are my Construction to Permanent Loan Options?

Conventional C2P

• Financing up to $766,550
• Up to 95% loan-to-value over a 12 month construction period.
• Lock-in fixed rate during construction with the ability to lower rate upon completion if market changes (fees may apply)

What is the C2P timeline?

The C2P timeline is longer than a normal home mortgage loan. This is because we have to verify and approve not only your information but your builder’s contract as well as review the construction plans and specifications. The time it takes to build your home will also vary based on a variety of factors including size of the home, builder availability, and market factors that might affect supply and demand. 

Can I build my own house?

In our conventional C2P program, self builds/owner general contractors are not allowed. 

Does my builder have to be approved beforehand?

Conventional C2P does not require a builder to be “approved” but we do have a contract approval process, and we require them to be licensed in the state in which they are building. We will request documentation from the builder and review their builder’s license and confirm that they are in good standing in their state.

Can you finance construction of a barndominum, modular, or log home?

Yes! We finance these homes under the same guidelines of a traditional stick built home.

What can I include in my construction loan?

Almost anything the builder says they will build. Examples include pool, shops, wells, septic tanks, barns, etc. 

What is the maximum amount I can borrow?

You can borrow up to $766,550 in our conventional C2P program with up to 95% loan-to-value over a 12 month construction period. 

What are my permanent mortgage term options?

For our conventional C2P, we offer 15 or 30 year terms. If interest rates drop during construction, you can lower your rate at modification (fees may apply).

What if I’m self-employed? 

Additional financials will be needed for self-employed borrowers. This includes: Copies of last two years’ personal tax returns (with all schedules signed and dated), copies of last two years corporate or partnership tax returns (with all schedules signed and dated, including K1’s), year to date current profit and loss statement (signed and dated).

What may I be responsible for out of pocket?

• Down payment (if you don’t own the land)
• Origination/lender charges
• Preferred attorney fees including title work
• Appraisal fee (this will be collected when your appraisal is ordered by a third party.) 
• Homeowners insurance / builders risk insurance 
• Flood Insurance (if applicable)
• Recording Fees
• Any property taxes due paid in full prior to modification Overage construction costs (if you exceed the cost of your build, you will have to provide proof of payment made in full to your builder prior to modification) 

This is a general list of out of pocket expenses and may vary. Discuss with your lender. 

What if my construction loan takes longer than 12 months?

Your loan can be extended if it takes longer than 12 months to complete construction with a maximum construction time of 18 months. Extension fees will be applied based on which C2P program you are using.

When do my payments start? Do I pay anything during construction?

Payments can start as early as 1 month after closing. As the builder takes more draws, your interest payment will increase. If we refinanced your land loan into your C2P loan, you will no longer have that separate payment since it will be included in your construction payment.