What is a Construction to Permanent Loan? An FHA Construction-to-Permanent (C2P) loan is used to finance the construction of a new primary residence and permanent mortgage all into one single closing. The homeowner is approved for an FHA C2P loan if the homeowner is qualified for the long-term permanent FHA mortgage.
Upon completion of construction, the borrower will be required to modify the interim construction loan (ICL) into a permanent FHA Fixed rate loan. There will be no additional closing or closing costs required. This loan is available Nationwide
- 3.5% down or 96.5% LTV based on Total Acquisition Cost of Land & Home Construction Cost
- 620 Mid FICO score required.
- 9-month build time from date of closing and funding.
Property Requirements & Limitations
- Single Family Residence, Owner Occupied.
- Site built homes only, no manufactured homes and Modular homes on an exception basis
- Loan amounts up to FHA Maximum for your area
- Gifted land allowed.
- Pool construction allowed. Restrictions apply.
- Lot/Land owned by the borrower for less than 12 months will be valued at the cost of acquisition or the appraised value whichever is less.
- No Self Builds - All Builders must go through a one-time approval process if not already approved
- Builder owned, 2nd homes and/or investment properties are not eligible.
Homeowner receives a bill monthly for construction interest accrual based upon funds dispersed thru the draw process to the builder. Call us today for more Details