A construction-to-permanent loan, often called a "construction-to-perm" or "one-time close" loan, is a single mortgage that finances both the construction of a new home and its permanent financing once construction is complete. This loan transitions seamlessly from a construction loan to a standard mortgage without the need for a second closing, simplifying the process and potentially reducing costs. It’s ideal for borrowers building a custom home or major renovation on a property they own or are purchasing.
