Construction-to-Permanent Loans
Single-Close Loan for Land & Manufactured Home
Finance land purchase, site preparation, and home installation • One closing saves thousands • Rate lock protection
How Construction-to-Permanent Works
A construction-to-permanent loan combines a construction loan and permanent mortgage into one loan with a single closing. Perfect for manufactured homes when you need to purchase land and prepare it for your new home.
Single Closing Advantage
One loan application, one closing, one set of fees
Interest-Only During Construction
Lower payments during the 4-6 month construction period
Automatic Conversion
Seamlessly converts to permanent mortgage at completion
Rate Lock Before Construction
Protect yourself from rising interest rates
Perfect For:
Typical Savings
What Can Be Financed?
Land Purchase
Purchase price of the lot or acreage
Site Preparation
Clearing, grading, excavation work
Foundation
Permanent foundation construction
Home Manufacturing
NEW manufactured home from factory
Installation/Setup
Professional home installation
Utility Connections
Electric, water, sewer, gas hookups
Driveway
Access road and parking area
Basic Landscaping
Minimal landscaping and grading
Permits and Fees
All required permits and inspections
Garage/Outbuildings
May be included depending on lender
Total Project Coverage
Construction-to-permanent loans can finance up to 90-95% of the completed project value, including land, site work, and home installation. This comprehensive financing approach means you need minimal cash out of pocket to get your project started.
Typical 5-Draw Schedule
Land Purchase/Site Preparation
20%Land purchase complete and initial site work
Foundation Complete
20%Permanent foundation passed inspection
Home Delivery
30%Home delivered and positioned on foundation
Home Set & Utilities
20%Home properly installed and utilities connected
Final Completion
10%All work complete and final inspection passed
How Draws Work
Funds are released (drawn) as construction milestones are completed and inspected. You only pay interest on the amount drawn, not the full loan amount. This keeps your payments low during construction and ensures work is completed properly before funds are released.
Construction Process Timeline
Pre-Construction
Month 1- Loan approval
- Home selection & ordering
- Permits obtained
- Site evaluation
Manufacturing
Months 2-4- Home built at factory
- Quality inspections
- Customizations completed
Site Preparation
Months 3-5- Land clearing and grading
- Foundation construction
- Utility rough-ins
Home Delivery & Setup
Months 5-7- Home delivery from factory
- Installation on foundation
- Utility connections
- Skirting
Final Completion
Month 7-8- Final inspections
- Touch-ups
- Loan conversion to permanent
- Move-in ready
Total Timeline: 4-6 Months
From loan closing to move-in ready. Weather and complexity can affect timing, but most projects complete within this timeframe.
One-Time vs Two-Time Close Comparison
| Feature | One-Time Close | Two-Time Close |
|---|---|---|
| Number of Closings | Single closing | Two separate closings |
| Closing Costs | One set of fees | Double closing costs |
| Rate Lock | Locked from start | Risk of rate changes |
| Qualification | Qualify once | Requalify for permanent loan |
| Total Cost | $2,000-3,000 savings | Higher overall costs |
| Timeline | Streamlined process | More complex, longer |
Clear Winner: One-Time Close
One-time close construction-to-permanent loans save you money, reduce complexity, and protect you from interest rate increases during construction. The choice is clear for most manufactured home projects.
Construction-to-Permanent Loan Programs
FHA Construction-to-Permanent
Key Features:
- Single close
- Government backing
- Lower down payment
Best For:
First-time buyers with limited down payment
VA Construction-to-Permanent
Key Features:
- No down payment
- No PMI
- Veterans only
Best For:
Qualified veterans and active duty
USDA Construction-to-Permanent
Key Features:
- Rural areas only
- 100% financing
- Income limits
Best For:
Rural properties within income limits
Conventional Construction-to-Permanent
Key Features:
- Flexible terms
- Higher loan limits
- Investment properties
Best For:
Higher income borrowers, investment properties
Why Choose Construction-to-Permanent?
Single-Close Advantage
One loan, one closing, one set of fees. Save thousands compared to separate construction and permanent loans.
Interest-Only During Construction
Pay only interest on funds drawn during construction. Lower payments during the building process.
Rate Lock Protection
Lock in your permanent loan rate before construction begins. Protected from rising rates.
Total Project Financing
Finance everything: land purchase, site work, foundation, home, and installation in one loan.
Ready to Build Your Dream Home?
Let R.J. help you explore construction-to-permanent financing for your land and manufactured home project
One loan • One closing • Complete project financing