What are the Benefits of Construction Permanent Financing?

Construction permanent financing is a means of financing the construction of and payment for your finished semi-custom home from Lifetime Series Homes. You can read about how construction permanent financing works in our blog here. In short, there are several structured payments during the construction of the home. Once the home is completed, the loan is converted into a permanent loan.

The Benefits of Construction Permanent Financing

Savings on Closing Costs

One of the parts of closing costs is transfer tax. With construction permanent financing, you close on the land before the house is even built. This means transfer tax is assessed on the lot only and not the construction of the home. This can save you a good deal in transfer tax and therefore closing costs.

Tax Benefits from Interest Paid of the Loan

Loan payments for the construction of your home are spread out in several payments. You only pay interest on individual payments during the construction of your home, as opposed to one lump sum, meaning your interest costs could potentially be reduced. (Always consult your tax adviser).

Lower Sales Price

When you use construction permanent financing, the builder uses the consumer rate for the line of credit, which is less than the commercial rate they would have used had it built the home on its own. The consumer rate is generally less than the commercial rate, so the builder will pass on these savings to you.


benefits of construction permanent financing


About the Lifetime Series Homes by Mueller Homes

The Lifetime Series Homes by Mueller Homes are a series of semi-custom house designs that were created with the intention of providing home buyers with new option when it comes to shopping for a home. The Lifetimes series includes 14 home templates including, 2 story, first floor master, and ranchers that are pre-designed and ready to build. Because they are ready to build, clients save significant time and money that would have gone into designing a custom home, yet with the Lifetime Series by Muller Homes, clients still get the build quality, attention to detail, and communication that comes with working with a custom home builder. We serve the central Maryland area, and also provide assistance with lot acquisition, evaluation, and home buying finance. Keep up with us on our blog as well as on FacebookTwitterGoogle+Pinterest and YouTube.