The Complete Guide to a Construction to Permanent Mortgage in Columbus, OH

What is a Construction to Permanent Mortgage?

Building your dream home in Columbus, OH is an exciting journey, but financing it should not be a stressful one. A construction to permanent mortgage, frequently referred to as a construction permanent loan or simply a construction loan, is a unique financing solution designed for future homeowners who want to build rather than buy an existing property.

Unlike a conventional fixed rate mortgage used to purchase a completed home, this loan provides the funds needed to pay for the lot and the construction costs. Once your home is fully built, the loan seamlessly transitions into a standard permanent mortgage.

At Sauk Mortgage Group, led by local expert Joe Sauk, we specialize in helping Ohio residents navigate these complex loans. If you have already received a quote from another lender, we are experts at providing second opinions on construction-to-permanent mortgages to ensure you get the best possible terms.

One-Time Close vs. Two-Time Close Construction Loans

When exploring a construction to permanent mortgage, you will typically encounter two primary structures: the one-time close and the two-time close.

• One-Time Close Construction Loan: Also known as a single-close loan, this option allows you to finance both the construction phase and the permanent mortgage with just one closing process. You pay closing costs once, and your interest rate is locked in before construction begins. This protects you from rising rates while your home is being built.
• Two-Time Close Construction Loan: This method involves two separate loans and two separate closings. The first is a short-term loan strictly for construction. Once the home is complete, you must apply and close on a new permanent mortgage to pay off the construction debt. While this means paying closing costs twice, it can offer more flexibility if you need to make changes to your loan amount or if you plan to use a bridge swing loan to manage the transition from your current home.

Choosing between a one-time and two-time close depends heavily on your financial situation and the specifics of your build. As a trusted mortgage broker in Columbus, OH, we shop multiple lenders to find the exact structure that fits your goals.

Why Choose Sauk Mortgage Group for Your Construction Loan?

Building a home requires a team of reliable professionals. Joe Sauk has been originating mortgage loans since 1993, bringing decades of hands-on experience to the table. Whether you are looking for a standard construction loan or need an expert to review a current offer, our team is here to help you overcome any roadblocks that arise.

Our mission is to serve our customers with honesty, integrity, and competence. We actively shop multiple lenders to secure the lowest interest rates and closing costs available for your construction to permanent mortgage.

Compliance Notice: Sauk Mortgage Group Ltd is an Equal Housing Opportunity provider, licensed in both Ohio and Florida. All loans are subject to credit approval and property appraisal.

Q1: What is a construction to permanent mortgage?

It is a financing option that provides funds to build a home and then automatically converts into a traditional mortgage once construction is complete.

Q2: Do I have to make full mortgage payments during construction?

No, during the building phase, you typically only make interest-only payments based on the funds that have been drawn to pay the builder.

Q3: Can I get a second opinion on my construction loan offer?

Absolutely. We are experts at providing second opinions on construction-to-permanent mortgages to ensure you are receiving the most favorable rates and terms.

Q4: What is the benefit of a one-time close construction loan?

The primary benefits are that you only pay closing costs once and you lock in your permanent interest rate before construction begins, protecting you from rate increases.

Q5: Can I use a bridge loan alongside my construction permanent loan?

Yes, many borrowers use a bridge swing loan to access equity in their current home to help cover down payments or construction costs before their old home sells.