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Construction Program

Often, getting approved for a construction loan can be tricky. In many cases, two loans are required--one for construction and one for permanent financing. Usually you will have to pay closing costs on both loans, not to mention the extra paperwork, time and hassle involved. But we offer a single-close Construction-to-Permanent Loan that combines both construction and permanent financing into one loan. Construction-to-Permanent Loan allows for a construction period of 6 to 12 months. Other options are also available. And when your project is complete, the loan simply converts to a permanent mortgage.

In addition to the contract price, it is common for a construction lender to build a contingency reserve into the loan. This is a specified percentage or dollar amount usually required by the lender in case of unforeseen circumstances that could negatively impact the construction of your home. The amount required is usually based on a percentage of the contract price, on- site costs or loan amount.

Additional costs will vary, and may include construction loan closing costs and fees and special insurance requirements. But don't worry; our Construction-to- Permanent Loan includes on-site costs, off-site costs, closing costs, interest reserve, contingency reserve and lot purchase or value.

Construction-to-Permanent Loan program includes an interest reserve, which means that you will not have any payments out of pocket during the construction period. We will incorporate an interest reserve account within the loan amount. Depending on how quickly you use your construction funds, there may be sufficient funds within the construction loan to carry you through the entire construction period. As each construction project is unique, you will need to discuss your options with your Construction Loan Specialist at ASHTON KLEIN MORTGAGE.