New Construction

What is a construction-to-permanent loan?

By Bob Millaway July 26, 2026

Short Answer

A construction-to-permanent loan is a single loan that covers both the construction phase and the permanent mortgage on a new home. During construction, you pay interest only on the amount drawn. Once construction is complete, the loan converts to a standard fixed-rate or adjustable-rate mortgage. This avoids the need for two separate loans and saves on closing costs. You will need a 20% to 25% down payment and strong credit. Full answer page coming soon.

Full answer page coming soon. This page will explain how construction-to-permanent loans work in New Jersey including the draw process, conversion, and requirements.

Bob Millaway

Bob's Advice

Redfin Senior Agent · AI Certified Agent

Full answer page coming soon. A construction-to-permanent loan simplifies the financing process and saves you money on closing costs. I can connect you with lenders who specialize in this type of loan.

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