How many loans are involved in a Construction Permanent loan?

A Construction Permanent loan effectively combines the financing of both the construction phase and the permanent mortgage into a single loan product. This structure allows borrowers to secure the funds necessary to build their home and then transition seamlessly into a long-term mortgage once construction is complete, typically without the need for a second closing.

By having just one loan and one set of closing costs, borrowers can save on expenses and streamline the process, as there is no need for a new application or underwriting once the construction is finished. This can significantly simplify the financing process for homeowners as they move from building to occupying their new home.

This approach contrasts with the idea of managing multiple loans or unnecessary complexities, as seen in other options. Not only is the Construction Permanent loan more efficient, but it also alleviates the burden of dealing with different lenders or additional fees related to separate closings.