Construction/ Permanent Loans

Loan programs assist borrowers who want to build new properties. Construction loans are available, as well as a combination construction/permanent option that features a single closing. 

The loan would be secured by a mortgage on the land and the property, once it is built. The construction loan usually has a short term (12-24 months) to allow time to complete the building, and might then convert to a permanent mortgage on the completed property.  With such loans, one has to decide whether to incur the additional risk of building a space.