Construction to Permanent Loan
A construction to permanent loan is a loan used to finance the construction of a home. When the home is complete, it converts into a permanent mortgage loan. Another common term for a construction to permanent loan is a single-close loan.
Why a Construction to Perm Loan
This enables you to combine two different loans into a single one. This type of loan is simple because when the construction of the house is over, the construction financing is converted into a permanent mortgage. Since two loans are combined into one, it saves both your time and money. You will not have to waste your time and apply for both separately. Plus, you won't have to pay the closing cost twice, thus saving a lot of money.