Construction-to-Permanent Loans

A construction-to-permanent loan finances the build first, then converts to a long-term mortgage once construction is complete—typically with one closing.

Construction funds are generally released in stages (draws) based on completed work and inspections, helping align payments with progress.

Many programs allow you to lock your rate during construction, and some offer a float-down option if market conditions improve (when available).

Yes—many borrowers include land (purchase or owned) in the construction-to-permanent structure, depending on program guidelines.

Timelines vary by builder and scope. Most builds fall within a set construction period, and extensions may be possible if needed.