What Construction Perm Products Are Available and Options for Your Building Journey

For homeowners planning to build or renovate a property, selecting the right construction loan is key to ensuring a smooth and cost-effective process. At Ed Currie Mortgage, we offer a range of construction perm products designed to suit various financial needs and preferences. A one-time close construction loan, also known as a construction-to-permanent loan, simplifies financing by combining both construction and permanent financing into a single transaction. Below, we’ll break down the options available to you.

What Is a Construction Perm Loan?

A construction perm loan allows you to secure financing for both the construction phase and the permanent mortgage phase of your project in one closing. This means you don’t have to apply for separate loans, eliminating the complexities and costs typically associated with construction financing. With a one-time close loan, you lock in your terms upfront, offering predictability and peace of mind throughout the building process.

Construction Perm Products

Fixed-Rate Construction Loan (With a Float Down) A fixed-rate construction loan offers stability and predictability by locking in your interest rate at the time of closing. With the added benefit of a “float down” option, you can take advantage of lower interest rates if they decrease during the construction period.

Key Benefits:

1. • Stable monthly payments once the loan converts to a permanent mortgage.
   • Protection against rising interest rates.
   • Opportunity to adjust to a lower rate if the market improves.

This option is ideal for borrowers who prioritize stability and want to lock in favorable rates.

1. 5/6 and 7/6 ARM Construction Loans Adjustable-rate mortgages (ARMs) feature an initial fixed-rate period (5 or 7 years), followed by periodic rate adjustments every 6 months. These loans offer flexibility during the construction phase and allow for conversion to a fixed-rate loan later on.

Key Benefits:

1. • Lower initial interest rates compared to fixed-rate loans.
   • Potential for reduced payments during the initial term.
   • Option to lock into a fixed rate later for long-term stability.

This loan is ideal for those seeking lower initial payments and flexibility in managing their finances.

1. Jumbo ARM Construction Loan For larger loan amounts, our Jumbo ARM construction loan is tailored to meet high-value financing needs. Structured similarly to standard ARMs but for larger balances, this product is perfect for custom luxury homes or extensive renovations.

Key Benefits:

1. • Competitive rates for higher loan amounts.
   • Flexible terms tailored to your unique needs.
   • Same construction-to-permanent convenience.

This solution is ideal for borrowers seeking financing beyond traditional conforming loan limits.

1. Construction Rehab ARM Product If you’re planning to renovate or rehabilitate an existing property, the Construction Rehab ARM product is designed specifically for you. This loan combines the benefits of construction and ARM financing, offering an excellent solution for borrowers looking to update their current home or purchase and renovate a property.

Key Benefits:

1. • Funds for both purchase and rehabilitation.
   • Lower initial payments with ARM structure.
   • Streamlined financing for renovation projects.

This product is perfect for borrowers looking to breathe new life into older properties while maintaining financial flexibility.

Choosing the Right Product

Choosing the right construction perm product depends on your financial goals, project scope, and future plans. Here are some factors to consider:

• Budget: Fixed-rate loans are great for those who value stability, while ARM products may be ideal for borrowers seeking lower initial payments.
• Loan Amount: Jumbo loans are essential for larger projects, especially for luxury builds or significant renovations.
• Project Type: If your focus is on renovation, the Rehab ARM product may be the best fit.
• Interest Rate Trends: A fixed-rate loan with a float-down option could be appealing if you expect market rates to fluctuate during construction.

Building or renovating your home is an exciting journey, and the right financing can make all the difference. Whether you need the stability of a fixed-rate loan, the flexibility of an ARM, or specialized financing for renovations, Ed Currie Mortgage is here to help guide you every step of the way.

Contact us today to explore these construction perm products and find the one that best fits your needs.