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HomeStyle Construction-to-Permanent Mortgage

HomeStyle Construction-to-Permanent Mortgage


This mortgage gives you the financial power to build your own home – you can borrow money to build a home from the ground up or to finish building a home that’s currently under construction. This loan provides financing from the construction through the purchase phases of your new home.


  • You enjoy peace of mind by locking in fixed interest rates on both the construction and permanent mortgage financing phases of your home purchase in one convenient loan.
  • You can borrow a minimum of 95 percent of the construction cost or the as-completed value of the property (which means your down payment can be as low as 5 percent).
  • You can use this mortgage to purchase land upon which you build your home.
  • You save money because there is one set of closing costs, compared to those associated with separate loans for construction and occupancy.
  • You pay interest only on the funds disbursed during construction.
  • This mortgage can be used for construction that’s already under way.


  • A minimum down payment of 5 percent for a one-unit home and 10 percent for two-unit homes.
  • Construction phases of six, nine, or 12 months, with extensions available up to six months, are allowed.
  • This loan is available for one- and two-unit owner-occupied homes, one-unit second homes, and one-unit investor homes.
  • You can choose a 15- or 30-year fixed-rate mortgage. You can also include the construction phase in these terms, or not, depending on your preference.
  • You can also finance with fixed-period ARMs.
HomeStyle Construction-to-Permanent Mortgage
Investment Property
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