Construction-to-Permanent Loans: One Loan from Groundbreaking to Move-In Day
Building your own home is the ultimate expression of personal vision. You choose the location. You choose the layout. You design a space that fits your life—not someone else’s.
But financing a custom build can feel complicated. Many buyers are told they need two loans: one for construction and another for the finished home. That often means two applications, two approvals, two closings, and two sets of fees.
There’s a smarter way.
A Construction-to-Permanent (C/P) Loan allows you to finance your build and your long-term mortgage in one seamless solution. One loan. One approval. One closing. From groundbreaking to move-in day, your financing follows a clear, simple path.
As a Mortgage Loan Officer with Acrisure Mortgage, I’ve helped many clients turn the idea of “building someday” into a real plan—without unnecessary complexity or surprises.
This guide explains how Construction-to-Perm loans work, who they’re for, and why they’re one of the most powerful tools for buyers who want to build with confidence.
Who This Loan Is For
Construction-to-Permanent loans are ideal for:
Buyers building a custom home
Families purchasing land and placing a home
Homeowners rebuilding after a sale or relocation
Buyers working with a local builder
Anyone who wants simplicity and predictability
If you’ve ever thought, “I’d love to build, but the financing seems complicated,” this program was created for you.
How a Construction-to-Perm Loan Works
Traditional construction financing looks like this:
Apply for a construction loan
Close on that loan
Build the home
Apply again for a permanent mortgage
Close a second time
Pay a second set of fees
A Construction-to-Perm loan changes everything.
With a C/P loan:
You apply once
You close once
Funds are disbursed in stages during construction
When the home is complete, the loan converts automatically into your permanent mortgage
No re-qualification. No second closing. No surprises.
You know your long-term financing from day one.
Key Parameters & Program Highlights
Construction-to-Perm loans are available through multiple programs, including:
Conventional C/P Loans – Often with down payments as low as 5%
FHA C/P Loans – With down payments as low as 3.5%
VA C/P Loans – For eligible veterans, often with 0% down
Jumbo C/P Options – For higher-value builds
Depending on the program, these loans can include:
Land purchase or payoff
Construction costs
Permanent mortgage financing
Fixed or adjustable rate options
Extended rate locks
You’ll typically need:
A licensed builder
Approved plans and specs
A construction budget
Credit and income approval
I guide you through every step—coordinating with your builder and ensuring the financing aligns with your timeline.
Why Buyers Love This Loan
Construction-to-Perm loans remove friction from the building process.
Key benefits include:
One Closing – Save time and money
One Approval – No re-qualifying after the home is built
Predictability – Know your long-term loan terms up front
Simplicity – One lender, one process, one plan
Confidence – No last-minute financing surprises
Instead of worrying about how the loan will come together, you can focus on what matters—creating your home.
Real-World Use Cases
This loan is perfect for:
A family buying land and building their forever home
A couple relocating and building with a local builder
A buyer replacing an older home with a custom build
A homeowner selling and rebuilding in a new location
In each case, the C/P loan creates clarity. You don’t have to “hope” you’ll qualify later. You know from the beginning.
FAQ: Construction-to-Permanent Loans
Do I need to own the land already?
Not necessarily. Many C/P loans can include the land purchase in the financing.
What happens during construction?
Funds are released in stages (called draws) as work is completed. Your builder is paid as the home progresses.
Do I make payments during construction?
Typically, you pay interest only on the amount drawn during construction.
What if rates change while I’m building?
Many programs offer extended rate locks and float-down options. We’ll structure this to protect you.
Is this more expensive than two separate loans?
In most cases, it’s more cost-effective because you avoid a second closing and related fees.
Let’s Build with Confidence
Building a home should feel exciting—not overwhelming.
A Construction-to-Permanent loan gives you a clear path from idea to keys in hand. One plan. One process. One trusted guide.
If you’re thinking about building—or even just exploring what’s possible—I’d love to help you map it out.
📞 850-450-5788
📧 slockler@acrisuremortgage.com
🌐 LockWithLockler.com
Your dream home deserves a smart foundation.