Construction to Permanent Financing
Streamlined construction loans with a one-time closing.
Benefits of a One-Time Closing
- Lock in rate for the life of the loan (construction and permanent financing).
- Scheduled loan disbursements to builder upon submission of each invoice.
- Interest-only payments for the construction period of up to 12 months.
- Lot purchase can be rolled into the one-time closing.
- Upon completion of construction the loan modifies to principle and interest payments with the same rate locked before construction began.
Loan Types Available
- Fixed-Rate Products (10, 15, 20 or 30 years)
- Adjustable-Rate Products (1/1, 3/1, 5/1 or 7/1)
- Borrower must meet with a Purdue Federal mortgage representative and complete a full 1003 Mortgage Application.
- Provide all required documents for credit approval.
- Submit purchase agreement, plans and specifications of the subject property.
Loan Draw Process
- Builder may contact Purdue Federal to request a draw by submitting an invoice.
- On the first draw, a building permit, lot survey, and if applicable, well and septic approval are requested. Purdue Federal will order a house location survey, title update (insurance property is still free and clear of any liens) and property inspection (ensures percentage of work complete matches draw amount).
- Once this information is approved, a check will be cut from the construction loan and made payable to the title company. The title company will ensure the builder signs a lien waiver, and the check will be made payable to the builder and the borrower.
*Subject to credit approval. Membership eligibility required.