A Construction Perm loan (C/P Loan), is a hybrid loan that allows for a construction period and then, when the construction phase has completed, changes or modifies into a permanent loan. This loan program bridges the gap of construction financing and separate “end loan” (permanent) financing. The C/P Loan helps you avoid having to pay two sets of closing costs since you will only have one closing.
With the C/P Loan, you are not limited to either existing homes (resales) or new homes in a builder’s subdivision. You can choose the location, design and builder of your dream home. It’s even possible to incorporate the purchase of the lot into the C/P Loan program.