06 · Loan Program

Construction-to-Permanent

A single-close loan that covers the land purchase, construction draws, and permanent mortgage — eliminating duplicate closings and double sets of fees.

Who This Loan Is For

Buyers building a custom home on a lot they own or are purchasing simultaneously
Buyers who want to lock their permanent interest rate before construction begins, protecting against rate increases during the build
Borrowers who want to minimize closing costs by combining the construction loan and mortgage into a single closing
Buyers working with a licensed general contractor on a defined build timeline of 6–18 months

How It Works

From first conversation
to closing day.

Single Close at the Start

You close once before construction begins, locking your permanent rate and eliminating the need for a second closing when the home is complete.

Construction Draw Schedule

Funds are released in stages as construction milestones are reached and inspected. You pay interest only on the funds drawn, not the full loan amount.

Construction-to-Permanent Conversion

When the certificate of occupancy is issued, the loan automatically converts to your permanent mortgage with no additional paperwork or closing costs.

Final Inspection & Move-In

A final inspection confirms the home meets the original approved plans. The permanent amortization schedule begins and your first full mortgage payment is due.

Key Benefits

What makes this program
work for the right borrower.

One Closing, One Set of Fees

A two-close construction loan requires separate origination, appraisal, title, and attorney fees twice. The single-close structure eliminates duplicate costs.

Rate Lock Before Ground Breaks

Locking your permanent rate before construction starts protects you from rising interest rates during the 6–18 month build period.

Interest-Only During Construction

You pay interest only on the drawn balance during construction, keeping monthly costs low while your income supports the build and your current housing costs.

Requirements Snapshot

Quick-reference guidelines.

Minimum Credit Score	680 minimum; stronger credit improves rate and reserve requirements
Down Payment	10–20% of the total project cost (land + construction budget)
Contractor Requirement	Licensed, insured general contractor with verifiable completed projects required
Appraisal Basis	Appraised on completed value ('as-completed' appraisal) based on approved construction plans
Timeline	Construction must complete within the term (typically 12–18 months); extensions available on a case-by-case basis

Edge Home Finance, LLC • NMLS #891464 • 5860 Baker Road, Minnetonka, MN 55345

Equal Housing Opportunity Lender. This is not a commitment to lend. All loans subject to credit approval.

Licensed in: Georgia and Florida • NMLS Consumer Access: www.nmlsconsumeraccess.org • Licensing & Disclosures

Equal Housing Opportunity