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Liberty Mortgage, Inc.
509 W. McKinley Avenue
Mishawaka, Indiana 46545
Telephone 257-0629
or 888-568-1786
Fax 574-257-0632
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Construction to Perm Loans,
Separate Construction/End Loans
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CONSTRUCTION TO PERM LOANS:
A construction to perm loan is a one time closing where you have your
down payment money up front. The loan goes into a construction period for usually 6 months to build,
then there is a modification agreement to the note recorded when the house is done, that switches you
from the construction loan interest to your end loan interest for which ever end loan type you choose.
On most programs there is an interest payment due every month during construction by you, calculated
using simple interest based on the amount of money drawn for the number of days drawn, just like a credit
card.
SEPERATE CONSTRUCTION/END LOAN COMBINATIONS:
When you have substantial equity in your
home and you need to sell your home for your down payment and you want to use the build time as sales
time to sell your home, you can get approved on an end loan/construction loan combination and start building
while your house goes up for sale. This is two loans vs. one, with you paying interest charges per month
just like above. We may also be able to get the builder to do the construction loan in his/her name and
include construction loan and end loan closing costs in the price of the home including interest payments
and have the builder pay all.
INTEREST RATE LOCKS:
There are long term interest rate locks
available on all programs. There maybe a fee and float up/down conditions required with these if a long
lock is requested. Usually there is no fee if we are just locking for 60-90 days. Please check for details.
Please consult us on your scenario.
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