California Construction to Permanent Loans (Single Close Transactions)
California One-Time Construction to Permanent Loan Program (Single-closing transactions) from Pacific Home Loans®, your borrowers can go from breaking ground to move-in, in one easy process by combining the financing of the residential lot purchase, construction costs and permanent loan in a single mortgage.
We’re here to help you from start to finish
Pacific Home Loans’s in-house home construction loan team will assist in every aspect of the process, and are here to answer your questions and help you get started.
The One-Time Close Construction loan program is perfect for:
Peace of mind with fixed-rate financing
- The permanent mortgage maximum rate is determined prior to the start of construction
- The construction interest rate is fixed during the construction period
- Plus a float down option on the permanent rate is offered at completion of construction!
Saving borrowers both money and time
- Closing costs may be financed
- The efficiency and cost savings of a single closing versus a dual closing
- The payment reserve for the interest only housing payment during the construction term may be financed into the permanent loan amount
- 30 year fixed rate
- FICO from 680
- Eligible properties include detached SFRs, PUDs, detached condos, and manufactured housing
- Owner-occupied and second homes are eligible
- Standard Conforming and Conforming High-Balance loan amounts up to $765,600
- 90% LTV – lesser of cost to buy and build or the final appraised value on purchases, final appraised value on refis
- No cost to the builder
Contact us to discuss our construction loan programs for Investors and loan amounts over $765,600.
Construction Package Checklist
Retaining the services of a licensed general contractor is required for every construction loan. Exceptions for owner builder will be considered for a licensed contractor.
The contract, executed by the contractor and the borrower is an agreement between the parties outlining the cost of the project, responsibilities assigned to the contractor and borrower, and the disbursement schedule.
Plans and Specifications
The plans and specifications used for appraisal purposes much exactly match those submitted to the County’s Building Department. This must be certified by the contractor.
Payment and Performance Bond
A payment and performance bond gives the lender and the borrower the assurance that the construction project will be completed and to satisfaction. It must be issued by a bonding company that is acceptable to the lender.
A copy of the building permit issued by the County must be provided.
A property inspection will occur at the time of each disbursement to track the progress of the construction contract timeline. Prior to the release of funds, the goal of the timeline must be met.
Notice of Completion
Once a notice of completion is received from the bonding company, your loan will be converted to permanent financing.
The permanent loan term is decided and locked in at loan submission. This is an added benefit in a rising interest environment. Your rate during construction is your permanent rate and is interest only.
Residential Construction to Permanent Loan
- Build a custom home
- Build a custom attached or detached accessory dwelling
- Build a custom home and attached or detached accessory dwelling
- Loan can be considered for a purchase
- Loan can be considered for a refinance
- Loan amounts up to $4,000,000
The construction loan will automatically roll into a permanent loan as soon as you receive your notice of completion. If you have a 6-month construction period, you will have a 354-month amortization on the permanent loan. Construction periods range from 6 to 18 months.
Pacific Home Loans offers several California construction to permanent loans, available throughout the state of California, to choose from.