Construction to Permanent (C/P) loans offer two strategies. The first is a 1 time closing. Pretty much where you KNOW how much will be spent to build the property and you can pay the difference if it goes over. The second way is a 2 time closing. This states that you have an idea of what it will cost, but if you go over the loan amount, you can close a second time to cover the excess costs.
In the 2 time closing, you will have 2 sets of closing costs, so make sure you take that into consideration when figuring out your expenses.
Start gathering as much information as you can about the home to be built: Blue prints, upgrades to be used, etc. Now would also be a good time to evaluate how long you will be in that house and if having stairs is a good idea if your knees hurt later in life. Some of my clients installed an elevator in the home. If there is anything that you want in that house, finance it. Don't think about doing it later to keep costs down. Trust me, life will get in the way and you'll wish you added it to the loan.
If your costs exceed $417,000 because the upgrades pushed the value over the conforming threshold, fear not. As long as your loan amount stays below that number, you can still get conforming rates. C/P rates are always higher than normal rates because of the risk involved of the builder not completing the project.
A one-time close construction permanent loan is the best way to build a home from the ground up or handle a major renovation. BB&T offers 1x close CP loan on 30 and 15 year fixed as was all adjustable rate products. We would lock your interest rate in on the front-end (prior to construction starting) without an upfront lock fee. I have 30 yeas of experience as a lender with over $100 million in closed construction-permanent loans. Building a home can be a great experience with the right builder as well as choosing a lender that can provide you with the insights necessary to mitigate risk.
Please feel to contact me on my cell phone at 404.384.2270 if I can serve you.
Brand Mortgage has an excellent construction to perm loan program. Feel free to contact me for more details.
3328 Peachtree Road, NE | Suite 200 |Atlanta, GA 30326
NMLS# 75615 | 1078450
Please give me a call and I can get you set up ASAP with the financing you seek.
My information appears below and I'm available any time!
Gregory J. Peters
Sales Manager | Evolve Bank & Trust
11605 Haynes Bridge Road Suite 125| Alpharetta, GA 30009
770-255-3835 | fax 678-387-1435 | cell 770-864-7926
Apply online! http://www.gregoryjpeters.com/
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Senior Loan Officer
STERLING NATIONAL BANK
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Woodbury, NY 11797
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Capital City Mortgage Investments, Inc
GA mortgage LENDER licensee #7064