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construction-to-permanent mortgage
One loan. One closing. Build your home with confidence from start to finish.
build your home with confidence
enjoy a smooth transition from construction to permanent financing
A Construction-to-Permanent Loan from United makes it easy to build your home with just one convenient transaction. This loan finances both the construction phase and your long-term mortgage—so once your home is built, your loan automatically converts to a permanent mortgage without the hassle of applying again or paying for two closings.
Choose from Fixed Rate or Adjustable Rate Mortgage (ARM) options, including 5/1 ARM and 7/1 ARM structures. Financing is available for both primary and second homes, with up to 90% loan-to-value (LTV)1 for qualified borrowers.
Our local mortgage advisors are here to guide you from builder planning through loan conversion—so you can build with confidence and avoid the usual financing stress.
Features
- One-time closing – Finance both construction and mortgage in one streamlined process
- Automatically converts to a permanent loan – No second application or closing required
- Up to 90% loan-to-value (LTV) – Borrow up to 90% of your project’s value1
- Loan type options – Choose from Fixed Rate, 5/1 ARM, or 7/1 ARM terms
- Eligible for primary and second homes – Build your main home or a vacation property
- Make interest-only payments during construction – Helps manage monthly costs while you build2
- Local support, every step – Work with a mortgage advisor who knows your market and your goals
Ideal For:
A construction-to-permanent loan is ideal for those building a new home and want the simplicity of one loan and one closing—saving time and closing costs.
Frequently Asked Questions
A: A Construction-to-Permanent Loan finances both the construction of your home and the long-term mortgage in a single loan. You close once, make interest-only payments during construction, and when the home is complete, the loan automatically converts to a permanent mortgage—no second application or closing required.
If you'd like help understanding the single-close process, connect with a Mortgage Advisor.
A: Qualified borrowers may finance up to 90% loan-to-value (LTV), meaning a down payment as low as 10% may be required. Your minimum down payment will depend on factors such as credit history, project cost, and property type.
A Mortgage Advisor can help you determine the specific amount needed for your project.
A: Construction-to-Permamant loans are available for the construction of one-unit primary residences and second homes. Your project must meet standard underwriting requirements and include approved builder plans, a construction budget, and a clear timeline.
If you're unsure whether your home plan qualifies, speak with a Mortgage Advisor.
A: During construction, you make interest-only payments based on the amount that has been drawn to date. This can help keep monthly costs lower while your home is being built. Once construction is complete, the loan automatically converts to regular principal-and-interest payments based on your selected fixed or ARM term.
If you’d like to compare payment options, talk with a Mortgage Advisor.
A: No. With a Construction-to-Permanent Loan, you close once and your loan automatically converts to a permanent mortgage when construction is finished. There is no need to reapply, complete a second credit review, or pay additional closing costs, which helps streamline the entire process.
To understand how loan conversion works, connect with a Mortgage Advisor.
A: During the construction phase, funds are released from your Construction-to-Permanent Loan in stages, called draws. Each draw is tied to a specific phase of your builder’s work, and funds are disbursed after progress is verified—such as through an inspection or confirmation of completed milestones.
This approach helps ensure the project stays on track and that funds are used as planned. If you’d like to review how draws would work for your specific build, talk with a Mortgage Advisor.
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Offer and terms subject to change. Loans subject to credit and collateral approval. Rate and term based on individual credit history and program guidelines. Consult a mortgage advisor for more details.
[1] Available to well-qualified borrowers only.
[2] Interest-only payments apply during the construction phase only. Once construction is complete, the loan automatically converts to a permanent mortgage. Certain restrictions apply.