By: Kim S. Shirey; Branch Manager
As we navigate fluctuating rates and rising building costs, it is helpful for prospective homeowners to understand construction-to-permanent loans and the benefits of this type of financing. If your dream is to build a home, you may consider a construction-to-permanent loan (CPerm) from First Farmers. We would love to partner with you to help make building your dream home a smooth process.
CPerm loans combine a construction loan with a traditional mortgage loan to simplify the process for customers who would rather build a home than purchase one. This loan type presents several advantages, including a single application, one-time closing costs, and the ability to lock-in a permanent financing rate.
One Application
One of the primary advantages of CPerm loans is that you can submit a single application to streamline the financing portion of the home building process. When you are ready to submit your application, you will need to have the required financial documents along with your finalized blueprints. You will also need to provide a complete materials list from your builder, and from there, your banker will walk you through each step in the process. By combining the applications for construction and traditional mortgage loans into one, CPerm loans offer significant time and money savings.
One-Time Closing
A one-time closing allows the convenience of paying closing costs once. It also means you only need to qualify for the loan once, rather than needing to go through separate qualification processes for a construction loan and a traditional mortgage loan. As you consider choosing a CPerm loan, our mortgage specialists can explain the qualification and closing process more in-depth to help you find the loan that best fits your financial needs.
Locked-In Rate
CPerm loans allow you to lock-in your rate for permanent financing at the beginning of the process, which can serve as peace of mind against economic changes and fluctuating rates. With a CPerm loan, you will know what your payment will be each month during the construction period through the permanent financing phase. Having this set rate can make it easier to budget for your monthly payment and set aside savings for unexpected expenses. Additionally, our free mortgage calculator is a great online resource that lets you estimate a monthly payment to build your dream home.
As you consider whether a CPerm loan is right for you, it is important to think about your long-term goals, budget, and unique aspirations. Is your goal to start from scratch and build your dream home? If so, this type of loan is a great option to help make your dream a reality.
If you are interested in learning more, visit our website to read about First Farmers’ CPerm financing solutions or give me a call at 800-882-8378. You can also browse our list of certified lenders to find one available in your area. We would love to meet with you to learn more about your needs and discuss how construction-to-permanent loan solutions can benefit you! First Farmers is an Equal Housing Lender.
