Understanding Construction-Perm Financing

couple sitting with mortgage professionalAn essential part of the process in building a new home is consideration and choice of the appropriate financing option. The Lifetime Series offered by Mueller Homes in partnership with our preferred lenders assist in making these determinations. Construction / Perm Financing involves two components, one for the construction phase and one for the permanent phase. The programs allow for inclusion of the home site, construction costs, permit fees, site work improvement costs, and more. The process allows for one coordinated plan with only one settlement and many, many options.

Construction-to-permanent loans can offer an array of features and benefits such as:

  • Interest-only payments during construction.
  • Choice of fixed or variable interest rates during construction.
  • An option to modify the construction loan to permanent financing with various loan options including fixed rate or adjustable rate loans, more.
  • Only one closing saves recording and other closing costs compared to when construction and permanent loans are closed separately.
  • The option under certain circumstances to decrease the loan balance at modification to avoid private mortgage insurance (PMI).
  • Compared to buying an existing home, transfer taxes may be calculated on the lot price only.
  • Rate lock options can include the availability of rate float down.
  • Lot loan financing options in conjunction with Construction-Permanent.
  • Can allows you to prepay without penalty.

Call one of our preferred lenders today and explore all of the features and benefits and the array of options pertaining to construction perm financing. We invite you to visit our other resources related to financing and frequently asked questions for even more information. Lastly, we encourage you to call our Lifetime Series program specialist for details… 443-506-0566.