Some of the pros and cons of [tag]construction-to-permanent loan[/tag]s from both the builder’s and the buyer’s perspectives.
For one thing, buyers can obtain such financing much cheaper than builders, which means the house can probably be built for less money. For another, only one closing is involved, so there’s only one set of expensive [tag]settlement cost[/tag]s. Sometimes known as “[tag]single-close[/tag],” “[tag]one-time close[/tag]” or even “[tag]all-in-one” loans[/tag], C2P mortgages start out as construction loans and then convert automatically to permanent [tag]financing[/tag] when the house is completed. They are not new. In fact, they have been around for years and are the favored form of financing in the [tag]custom home[/tag] market. But with lenders raising the bar ever higher, an increasing number of production [tag]builder[/tag]s are expected to turn to the product.