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Construction-to-Permanent Mortgages

Home | Construction-to-Permanent Mortgages

Construction-to-Permanent (C2P) Loans: Building Dreams From the Ground Up

If you are looking to build a home and need both construction financing and a permanent mortgage, this product may be right for you. By only having one closing and one set of closing costs, you save both time and money with a C2P loan.
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    How Does a C2P Loan Work?

    To build a home, you need a construction loan. Plans for the home and a timeline for construction is analyzed, and a draw schedule, or a schedule for the periodic release of funds, is made. Once you have taken your draws and finished most of the home, the construction loan becomes a permanent mortgage. During the construction phase, you only pay interest, meaning that you have more time, money, and energy to focus on actually completing your home!
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    Do C2P Loans Have Limitations?

    Just as there are limitations and requirements on conventional loans, so too are there requirements for C2P loans. Your loan amount, credit score, debt-to-income ratio, and down payment. At DNJ Gateway Bank Mortgage, we’re happy to help you assess whether your construction to permanent plans are eligible for a C2P loan, and if such a loan is the right choice for you and your family.
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    Are There Any Fees Associated With a C2P Loan?

    Yes – if your down payment is less than 20% of the total value of both the land and the home being built, you will be required to have private mortgage insurance (PMI), which ranges from 0.4%-1.2% of the loan amount and is paid monthly.

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Call DNJ Gateway Bank Mortgage to Learn More About Construction-to-Permanent Loans

To discuss C2P loans with one of our knowledgeable loan officers, contact DNJ Mortgage today! We’ve earned the trust of homeowners in the Triangle, the Triad the Outer Banks, Western North Carolina, Virginia Beach, Rehoboth Beach, the Eastern Shore of Maryland, the Eastern Shore of Virginia, and more – Let us earn yours! DNJ also offers mortgages in Tennessee, South Carolina, Georgia, Texas, and Florida. Call today!