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Construction/Permanent

A one-time close construction/permanent mortgage, also known as a "construction-to-permanent" loan, is a loan that allows borrowers to combine the financing for the construction of a new home and its permanent mortgage into a single loan.  The one-time closing, simplifies the process by requiring only one application and one closing. During the construction phase, the homeowner makes interest-only payments on the disbursed amount. Once construction is complete, the loan automatically converts into a standard mortgage, where the borrower begins making regular principal and interest payments. This type of loan is beneficial for those looking to build a new home as it reduces the closing costs and administrative hassle associated with multiple loans.

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