Construction Perm Loan

A construction perm loan is a type of financing that helps fund building a new home or commercial property. It combines two stages: initially, it provides funds during the construction phase to cover building costs. Once construction is complete, it automatically switches to a long-term mortgage, allowing you to pay it off over time. This eliminates the need for multiple loans and simplifies the borrowing process. Generally, these loans have variable interest rates during construction, then convert to fixed rates afterward, providing stability for repayment.