• Construction-Permanent Loans

Construction-Permanent Loans

The Construction-Permanent Loan is designed for borrowers who choose to finance the construction of their home by a reputable builder, desire to build a major addition to their home or want to make major renovations. The loan is made directly to the borrower and not to the builder. The Construction-Permanent Loan consists of two phases, the construction phase and the permanent phase. During the construction phase, the borrower is charged interest at either the permanent note rate or a floating interest rate based on SunTrust Bank's prime lending rate plus a margin. When construction is complete, the loan is modified into a permanent loan. The Construction Permanent Loan is only offered in conjunction with permanent financing. Construction financing alone is not offered. (This loan is available only in certain markets - not nationwide.)

• Can avoid paying origination fee at closing with a higher interest rate selection.
• Only one closing saves recording and other closing costs compared to when construction and permanent loans are closed separately.
• Doesn't tie up builder's funds -- potentially reduces cost of house.
• Rate lock options include availability of float down.
• Variety of permanent loan products available.
• One closing, not two.
• Lot loan financing in conjunction with Construction-Permanent.

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