How Do We Finance the Construction?
A Construction-to-End Mortgage Loan covers the cost of construction and then rolls over into a permanent loan. It is also possible to have this type of loan include the cost of your lot.
What Are the Benefits of Construction-to-Permanent Loan?
- The ownership of the property remains in your name
- It allows you to lock in your interest rate from the start of construction
- With just one closing you save time and money
- During construction you make interest only payments on just the funds that have been disbursed
- Provides peace of mind with both you and the bank controlling the funds
How Are the Funds Disbursed?
- The bank disburses money only with your approval
- Draws are taken upon completion of foundation, roof, drywall, cabinet installation and after a certificate of occupancy has been issued
- Documentation is provided by the builders that all subcontractors and suppliers have been paid in full for work completed before draw money can be paid