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• About Us  • View Testimonials  • Construction Programs  • Construction rates  • Comparing Options  - Loan offers from different    banks  -Construction cost estimates  -Building new or remodeling    VS buying an existing home  -Being my own contractor   VS using a general contractor  - Get Answers  • Educational Resources  - ABC's of Construction    Financing  - Stick-Frame Home    Information  - Log/Timber-Frame Home    Information  - Modular Home    Information  - Lending Dictionary  - Construction Dictionary  • Bank  - Refer a customer for a    construction loan  - Learn more about    construction loans  - Receive consultation on setting    up our own construction    loan program(s)  - Get added to the Construction     Advisors network of lenders  - Get Answers  • Contact US   What is a Construction-to-Permanent Loan? A construction-to-permanent loan (mortgage) is a "single-close" construction loan. This means one closing and one set of closing costs. The construction loan simply converts ("modifies") into a permanent mortgage when the construction phase is completed. It is important that you work with a lender who explains their modification requirements very clearly, to avoid potential penalties or surcharges that can occur with this kind of loan. At Construction Advisors, you can expect an astounding level of attention to detail, so that none of these little "mishaps" occur. Do I need a Construction-to-Permanent Loan? Everyone building a home should have a construction-to-permanent loan. At Construction Advisors we offer common sense lending and flexibility that cut through the red tape and make getting yours hassle-free. This eliminates the concern that no one wants to make it easy, and ensures you that you have the money to complete your house. It also gives borrowers access experts in construction to work with throughout the construction process to answer questions and solve problems if they arise. Bank Financing vs. Contractor "Turn-Key" Projects A contractor "turn-key" project is when a contractor (builder) offers to build a home for a client with their own money, then requires the client to obtain "take-out" or permanent financing from a lender. To do this, the client is charged a premium, even if it is not spelled out in black and white! Contractors also enjoy the fact that they eliminate one more person or company that has construction knowledge from the equation. Some contractors don't want to deal with inspections of their work. Why? Because this way no one with experience can see how good or bad of a job they are performing. With a bank-financed transaction, borrowers get the safety and security of somebody watching out for their interest from a third party perspective, and they get the costs spelled out in black and white. Construction-to-Permanent Mortgage vs. Cash Projects Have you ever gone to the store and forgot to bring enough money, so you had to put some items back? Thank goodness you weren't stuck with having to buy the goods just because you thought about buying them, right? Unfortunately, in many instances, with construction it's a completely different ballgame. Once you get begin a process, there is no turning back just because you figured your costs wrong. So what do you do when you run out of money? Go get more from the bank? No! Lenders like to engage in loans with minimal risk. Construction loans have a lot of risk, and construction loans where work has already begun have a tons of risk. This means that you can almost count on not convincing a bank to lend you money to finish a job that has already started. Instead of diving into a job figuring that there is enough money, borrowers should get a construction-to-permanent mortgage and have money available in advance — just in case. Some banks, like Construction Advisors, offer construction loans that are more like a credit line, where you only pay for what you use. Therefore, borrowers have the flexibility of using as much or as little as necessary, with no worries of paying ridiculous charges for money they will never use. More importantly, borrowers enjoy the strong confidence of knowing they will not leave themselves exposed to a very dangerous financial situation. Experience the Construction Advisors difference today —Contact Us to get started!

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