What is a Construction-to-Permanent Loan?

A Construction-to-Permanent loan is used to finance the construction of your home, lock in your interest rate and close before construction begins. Once construction has been completed, the C2P loan converts to a permanent mortgage.

With a C2P loan, you can buy land and build your house with as little as 3.5% down. You’ll only have one closing and one set of fees. No need to refinance.

How the C2P Loan Program Works

Conventional Construction-to-Permanent Loan

  • One loan purchases land and builds the home.
  • Loan amounts up to FNMA MAX loan limits.
  • Loan is made to the borrower.
  • 12-month build time from date of closing and funding.
  • Borrower is billed monthly for construction interest.
  • Builder paid closing cost allowed.

FHA Construction-to-Permanent Loan

96.5% LTV Max
FICO Score ??
  • One loan purchases land & builds the home.
  • Loan is made to the borrower.
  • 12-month build time from date of closing and funding.
  • Builder paid closing cost allowed.
  • Land equity in lieu of cash down payments, if you own the land.
  • 3rd party land purchase transactions allowed.


Jumbo Construction-to-Permanent Loan

Primary Residence

95% LTV – Up to $850K
720 FICO

90% LTV – $850K to $1MM
720 FICO

85% LTV - $1,000,001 to $1.5MM
740 FICO

  • Loan is made to the borrower.
  • 12-month build time from date of closing and funding.
  • Borrower is billed monthly for construction interest.
  • Builder paid closing cost allowed.

Home Construction Loan Draw Process

The draw process is easy. Your builder will work directly with Goldwater Bank, N.A., to facilitate and complete your build. As the builder utilizes the funds - referred to as the draw process, you will make monthly payments to Goldwater Bank.

Construction rates are pre-determined on credit score and down payment amounts by each borrower before the building process begins. Once the process has started the borrower will make one (1) monthly payment during construction based off builder draws.