Pay Off Your Construction Loan

Veteran-Owned Mortgage Broker in Colorado Springs

One of the most incredible things about living in Colorado Springs is the ability to grow with this beautiful city. A construction-to-permanent loan is a convenient way to consolidate your loan payments and save money after building a custom home.

From the plains of Peyton to the terrain of Teller County, the ability to purchase land and build a home is a Coloradan dream. The Reichert Mortgage Team is proud to offer a unique financing option to pay off your construction costs with a new permanent financing option.

As a mortgage broker in Colorado Springs, we have access to many residential home loans with various interest rates, term lengths, disbursement rates, and more. We want to bring our dream of building a home of your own come to life. Our construction-to-permanent loan option can help you convert your loan into a permanent mortgage after you have finished construction.

What Is Construction-To-Permanent Financing?

Construction-to-permanent loans allow you to finance your land or new custom home with a construction loan and then roll it over into a traditional mortgage. Rather than having two loans with different rates and monthly payments, you’ll have one easy monthly mortgage payment.

Mortgages typically have lower interest rates than construction or land loans, so a construction-to-permanent option will save you money over the life of the loan. You can also shop around for the best loan programs and rates. Just make sure that your chosen lender offers construction-to-permanent financing.

Construction-to-Permanent Requirements

Some construction-to-permanent lenders provide the construction loan and the eventual mortgage. At The Reichert Mortgage Team, we do not offer construction loans but can help you convert an existing loan into a traditional mortgage once construction is complete. To qualify, you must meet typical lender requirements, such as credit score and debt-to-income ratio.

Lenders may also require the new home to be used as an owner-occupied residence. Some construction-to-permanent loans can be used for manufactured homes, but these are usually government-funded programs such as Fannie Mae or Freddie Mac. The best way to see if you qualify for a construction-to-permanent loan is to meet with one of our mortgage experts.

How do Construction-to-Permanent Loans Work?

Application Phase

After you have all the plans drawn out and an approved builder, fill out an application for a construction loan. You will need to provide financial information, a copy of the construction agreement, and a specified cost of your proposed home.

Like any other loan type, you will need to be vetted for creditworthiness for a specific loan amount by the loan officer. If applicable to your build, you must provide a land contract, a copy of the floor plan, and the deed to the lot.

Construction Phase

You’ll use your construction loan to pay for construction materials and labor. Throughout the construction process, the contractor will submit an invoice to the broker, 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.

Completion Phase

To be officially considered complete, the project must be inspected and receive its permanent certificate of occupancy from the municipal building authority. During the final home inspection, you will create a “punch” list of items the contractor must complete before releasing the final payment. Once all certifications are earned, Reichert or your chosen lender will pay off the construction loan and convert it into a traditional fixed or adjustable-rate mortgage. You will need to go through two closing processes—one for your construction loan, and one for your new mortgage.


The Reichert Mortgage Team is honored to serve our community by providing excellent mortgage solutions, giving back to our heroes in the community, and providing valuable education. You can find down payment assistance programs, VA loan information, and mortgage rate information through our FREE blog resources. Learn everything you need to know to make an informed decision on your future mortgage.

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Choose The Reichert Mortgage Team as Your Construction-to-Permanent Loan Lender

At The Reichert Mortgage Team, we want to see you in the home you deserve. If the perfect home starts with breaking new ground, we are here for you, from the first scoop of dirt until you move into your new home. Our experience with local builders in Colorado Springs, Falcon, Peyton, Security, Teller County, and beyond allows us to provide helpful guidance during this process.

As a mortgage broker specializing in home construction-to-permanent loans in Colorado Springs, we are here for you every step of the way. Our mission is to provide all Coloradans with the home of their dreams. If you’re ready to invest in Colorado real estate, we can help.

As a veteran-owned and operated company, we are experts with VA home loans and construction-to-permanent loans. We also understand the ins and outs of VA loans and what the department of veteran affairs will allow you to use your VA loan for. If want to set up a time to discuss your specific needs and options, give us a call today.

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