Construction-to-Permanent Mortgages

A construction-to-permanent mortgage is a home loan that finances the construction of a new home and then transitions into a permanent mortgage once construction is complete. This financing option streamlines the process by combining construction and long-term financing into one loan.

With a construction-to-permanent mortgage, financing is used during the building phase of your home. Once construction is finished and all loan requirements are met, the loan converts into a traditional mortgage, allowing you to continue making payments under your permanent financing terms.

Construction-to-permanent financing simplifies the homebuilding process by combining construction financing and long-term mortgage financing into a single solution. This can reduce paperwork, streamline financing, and eliminate the need to secure a separate mortgage after construction is complete.

This type of loan may be a good option for individuals who plan to build a custom home rather than purchase an existing property. If you’re working with a builder and want financing that carries through from construction to homeownership, a construction-to-permanent loan may fit your needs.

Yes. Construction-to-permanent mortgages are commonly used to finance the construction of a primary residence. Your Cogent Bank mortgage lender can discuss eligible property types and financing options based on your project.

In addition to standard mortgage documentation such as income verification, tax returns, bank statements, and identification, construction financing may also require building plans, construction specifications, a builder contract, and additional project documentation before approval.

Construction loan funds are generally disbursed in stages as construction progresses. These scheduled disbursements help ensure funds are released as major milestones are completed throughout the building process.

After your home is completed and the construction requirements have been satisfied, the construction loan transitions into your permanent mortgage. From that point forward, you’ll make regular mortgage payments according to your loan agreement.

Depending on the financing program you select and your qualifications, fixed-rate and adjustable-rate mortgage options may be available. Your Cogent Bank Residential Mortgage Loan Originator can explain the available options for your project.

Qualification depends on factors including your credit profile, income, debt-to-income ratio, available assets, down payment, and details about your construction project. A Cogent Bank mortgage specialist can evaluate your financial situation and explain your financing options.

Before starting your project, it’s helpful to estimate your budget and monthly mortgage payment. Cogent Bank offers online financial calculators that can help you determine affordability and estimate future mortgage payments.

Yes. After your home has been completed and your loan has converted into a permanent mortgage, refinancing may be an option if your financial goals or market conditions change. Your mortgage lender can discuss available refinance solutions.

Cogent Bank provides personalized residential lending solutions, competitive mortgage options, and experienced Residential Mortgage Loan Originators throughout Florida who guide borrowers through every step of the construction and mortgage process.

Yes. Construction-to-permanent financing is designed for borrowers building a new home from the ground up. Your lender can explain eligible project requirements, builder qualifications, and financing options based on your plans.

Simply contact one of Cogent Bank’s Residential Mortgage Loan Originators to discuss your construction project, review financing options, and begin the application process. Your lender will walk you through the required documentation and next steps.