Lack of housing inventory continues to be a frustration for home buyers. Rather than stay stuck in your current home or in a bidding war, it might be wise to consider a construction-to-permanent loan which would allow you to build a custom home or tackle a fixer-upper. With this financing in place you can choose the home you want to build or renovate and create something that fits your unique needs and style.
So, how does a construction-to-permanent loan work? It starts by working with one of Univest’s expert construction loan officers to discuss your intent and review your options. You can then find a builder and create your plans. An appraisal is arranged to review the property and the intended work to determine an estimated value of the home once complete.
The initial loan includes construction financing for up to 12 months. Construction funds are disbursed as work is completed in compliance with the builder’s draw schedule. Completed work is verified by the original appraiser and once the home or renovation is complete, the loan is modified to address permanent financing.
Our unique one-time-closing feature allows for the “construction loan” and the “permanent loan” to be wrapped up into one mortgage which reduces your expenses by avoiding two separate closings. Other benefits to a Univest construction to permanent loan include:
- Loan amounts up to $2,000,000
- Fixed and adjustable-rate mortgage (ARM) products available
- Custom draw schedules
- Up to 80% loan-to-value (LTV)
- Construction periods available up to 12 months
- Rate protection during construction period
Are you ready to make your dream home a reality? At Univest, we pride ourselves on being the local expert for construction financing. For more information please contact us at 877-723-5571.
Univest Bank and Trust Co. is an Equal Housing Lender