CONSTRUCTION-TO-PERMANENT LOANS

Mortgage Lender in Colorado Springs

One of the greatest things about living in Colorado Springs is the ability to grow with this beautiful city. If you are ready to invest in land and construct your new home, then a construction-to-permanent loan is a convenient way to ultimately save time and money. From the plains of Peyton to the terrain of Teller County, loans to purchase land and build a home is a Coloradan dream, and The Reichert Mortgage Team is proud to offer this unique financing option.
 
As a mortgage broker in Colorado Springs, we have access to many residential home construction loans, ranging in interest rates, term-length, disbursement rates and more. We want to bring our dream of building a home of your own come to life.

What is a Construction-to-Permanent Loan?

Construction-to-Permanent loans combine the financing of a lot purchase, construction, and a permanent mortgage. Benefits range from saving time and money with only one closing cost to reducing stress by securing an interest rate that won’t change during the construction phase.

What are the Benefits?

  • One time closing cost
  • Only need to qualify for one loan
  • Lock-in interest rate
  • Affordable, interest-only payments during construction

How Do Home Construction Loans Work?

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Application PhaseAfter you have all the plans drawn out and the builder approved, it is time to fill out an application for a construction-to-permanent loan. You will need to provide financial information, a copy of the construction agreement with your
builder, and specified cost of your proposed home including options, upgrades, and value of the land. If applicable to your build, a land contract must be provided as well as a copy of the floor plan and deed to the lot.
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Construction Phase: When constructions begins, the loan is formed into a construction line of credit that is drawn upon as the construction progresses. Throughout the construction process, the contractor will submit an invoice to the lender who needs to ensure it is up to code. Once approved, more payments will be distributed to the contractor. It typically takes six to twenty-four months for the construction phase to be fully executed.
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Completion PhaseIn order to be officially considered complete, the project must be inspected and needs to receive its permanent certificate of occupancy from the municipal building authority. During final home inspection, you will create a “punch list” of items the contractor must complete before releasing final payment. Once all certifications are earned and final construction payments are made, the construction loan will convert into a permanent mortgage.

How Reichert Mortgage Team Can Help?

At Reichert Mortgage, we want to see you in the home of your dreams. If the perfect home for you starts with breaking new ground, then we are here for you the moment the dirt starts moving until you move into your new home. Our experience with builders in Colorado Springs, Falcon, Peyton, Security, Teller County, and beyond allows us to provide helpful guidance during this process.
 
We strive to ensure you are getting the best service possible as a lender who specializes in home construction loans in Colorado Springs, and we are here for you every step of the way. If you have any questions about construction-to-permanent loans or would like to set up a time to discuss your options, then contact us today.

How Can We Help You?