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, or 30 years)
- 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
- The builder submits an invoice to request a draw.
- The builder must provide a building permit, lot survey, and if applicable, well and septic approval prior to loan closing. Purdue Federal will order a house location survey, title update to ensure the property doesn’t have any liens, and property inspection to verify the percentage of complete work matches the requested draw amount.
- Once the above-mentioned information is approved, a check will be written 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 both the builder and borrower.
*Subject to credit approval. Membership eligibility required.