Trousdale Hard Money LLC's Construction-to-Permanent financing program offers a seamless, single-close solution that combines your construction loan and permanent mortgage into one streamlined process. This innovative approach eliminates the need for separate closings, saving you time, money, and paperwork while providing a smooth transition from building to homeownership.
During the construction phase, you'll make interest-only payments on the funds drawn, and once construction is complete, the loan automatically converts to a traditional mortgage with principal and interest payments. This program provides the convenience of locking in your permanent mortgage rate at the beginning of construction, protecting you from market fluctuations during the building process.
To facilitate a smooth transition from construction to permanent financing, we require specific documentation that verifies project completion and meets permanent mortgage underwriting standards.
Single-close construction-to-permanent loans offer several significant advantages: they eliminate the need for a second closing, saving you thousands in additional closing costs and fees. You lock in your permanent mortgage rate at the beginning of construction, protecting against interest rate increases during the building process. The streamlined process requires only one application and credit check, and provides continuous financing from groundbreaking through homeownership. This approach also simplifies the paperwork process and ensures a seamless transition without requalification requirements after construction completion.
With our Construction-to-Permanent program, you have the option to lock in your permanent mortgage rate at loan origination for up to 12 months, typically covering the entire construction period. During construction, you'll pay interest only on the disbursed funds at a construction-rate premium. Once construction is complete and the loan converts to permanent financing, your locked-in rate takes effect for the remainder of the loan term. We also offer float-down options in certain market conditions, providing protection against rate increases while allowing you to benefit from potential rate decreases before conversion.
We understand that construction timelines can sometimes extend beyond original estimates due to weather, supply chain issues, or other unforeseen circumstances. Our Construction-to-Permanent program includes built-in flexibility with extension options typically available for up to 90 days beyond the original completion date. If additional time is needed, we work with you to review the situation and may extend the construction period with appropriate documentation from your builder. Extended rate lock protection may also be available, though potentially with additional fees. Our team will guide you through any timeline adjustments to ensure a successful project completion.
