We are open and conducting business at The Reichert Mortgage Team! Give us a call at 719-205-0413 or contact us online to see how we can help you acquire a home loan, refinance, or take advantage of the low interest rates during these times. Just because we’re social distancing, it doesn’t mean we can’t get you pre-approved today.

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CONSTRUCTION-TO-PERMANENT LOANS

Veteran Owned 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, the ability to purchase land and build a home is a Coloradan dream, and 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 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. With our construction-to-permanent loan option, we can help you convert your loan into a permanent mortgage after you have finished construction.

What Is A Construction-To-Permanent Loan?

Construction-to-Permanent loans combine the financing of a lot purchase, construction expenses, 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. Additional benefits of Construction-to-Permanent loans include:

  • One time closing cost

  • Only need to qualify for one loan

  • Lock-in interest rate

  • Affordable, interest-only payments during construction

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How Do Home Construction-to-Permanent Loans Work?

Application Phase: After 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.
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.
Completion Phase: In 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 Can The Reichert Mortgage Team Help?

At The Reichert Mortgage Team, we want to see you in the home you deserve. If the perfect home starts with breaking new ground, then 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. 

We strive to ensure that you are getting the best possible service as a mortgage broker who specializes in home construction-to-permanent 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 specific needs and options, give us a call today.

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The Reichert Mortgage Team

The Reichert Mortgage Team is proud to be your local, veteran owned mortgage lender in Colorado Springs specializing in VA Loans.

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