Building your dream home takes a lot of work, but it does not have to be intimidating.
At VyStar Credit Union, we are here to help you every step of the way. We are the top mortgage lender in Northeast Florida, and that means we have a variety of loan options created for you. One of them is our construction-to-permanent loan, which is one loan with one rate and only one closing.
A construction-to-permanent loan provides short-term financial assistance through the building process and continues as a traditional loan once the construction of your home is complete. The loan can apply to any lot of your choice, and if it’s a lot that you already own, it can count toward the down payment for the loan.
When is a good time to start this loan?
The best time to apply for this loan is before you break ground on your home. This way you can lock in your rate with peace of mind knowing it won’t change even if rates rise. VyStar provides a calculator to budget how much you’d want to invest into your construction-to-permanent loan.
The construction-to-permanent loan process consists of two phases: the construction phase and the permanent phase.
Construction Phase
This phase begins as soon as your loan closes. Funds will be provided to either you or your builder through a series of disbursements as the construction of your new home progresses. During this phase, the loan balance grows slowly, and monthly payments are interest-only based on the loan funds disbursed. At VyStar, we will assign a designated Construction Perm Loan Coordinator to assist both you and your builder during this phase through conversion to permanent financing.
Permanent Phase
Once your home is complete and the final disbursement has been funded, your Construction Perm Loan Coordinator will work closely with you to collect the necessary documents to convert your loan to permanent financing. The permanent phase is identical to a traditional mortgage, allowing you to pay the mortgage balance through monthly principal and interest payments.
Additional Benefits
Other benefits of a construction-to-permanent loan include:
Up to 90% financing available
Loan amounts up to $3 million
Flexible construction loan terms
Free rate float-down on conversion to permanent financing
Various fixed rate and ARM options
Interest-only payments during the construction phase
Ready to learn more about the next steps and how to apply for a construction-to-permanent loan with VyStar? Check out our construction-to-permanent loan page.