Construction-to-permanent - This loan only requires one closing. Basically, it's our 7/1 ARM with an interest-only payment for the first 12 months and regular payments will begin with the thirteenth payment.
This loan requires:
- The borrower to have a minimum down payment of 20%
- The property is appraised by reviewing the plans and specifications. If the lot is paid for, it can be considered as part or all of the required down payment
- Construction loans normally require a one percent origination fee