Construction to Permanent


Account Description

·    The Single Close Construction Loan is a one-time closing loan that rolls into a permanent loan through a modification process at the conclusion of construction.

·    The program allows the borrower to obtain financing for construction of a primary or second/vacation home and will qualify them for construction financing as well as a normal loan by doing one loan.

·    The purpose of this financing is for the construction of a new home on a lot (not a rehab).

·    During construction period, borrower charged interest only as funds are disbursed.

·    At end of construction period if the home is not complete the borrower will be charged a penalty of 0.25% of the total loan amount, per month in addition to the regular interest payment.

·    When home is 100% complete, inspected, and occupancy permit is obtained, the loan converts to permanent financing when repayment of P&I, taxes, insurance begins.

 

Down Payment

·    90% financing available (may require PMI or line of credit)

 

Eligibility

·    Single Family homes, owner occupied or second home, improved lots

·    All loans must be underwritten to FNMA/FHLMC guidelines and First Federal of Lakewood underwriting guidelines

·    PRODUCTS AVAILABLE any Variable or Fixed rates products offered by FFL. Please note that any applicable purchase loan specials do not apply to the C2P program.

 

At Application

·    Cost estimate and or breakdown and add on list, if applicable

·    Specs signed by borrower and builder

·    Plans signed by borrower and builder

·    Proof of the borrower owns lot, if not part of purchase contract

·    Borrower should receive and sign the Construction Loan Information Sheet

·    Borrower will sign “Acknowledgement of Borrowers Responsibilities’ form

·    Builder Information Sheet to be completed by builder if not already improved

·    Copy of Builders Risk Insurance

·    Construction Loan Agreement to be signed by Borrower and Builder.

 

Penalties/Restrictions

·    No Prepayment Penalty

 

Draws

·    Standard practice will be five (5) draws. If additional draws are required, the draw fee will be $250.00 per additional draw, borrower will incur the cost. First Federal of Lakewood draw fee will be $200.00 per draw ($1,000.00 total for five (5) draws).


Account Features

Account Disclosure/Statements

Assistance

*Speak with a Mortgage Loan Specialist for full details, exceptions may apply.