Whether launching a major renovation, adding on to your home or building from the ground up, Construction-To-Permanent (CP) Loans from SunTrust Mortgage are designed to help you finance the home you always imagined.
One-time closing process can save on recording fees and other closing costs compared to having separate closings for construction and permanent loans
You may be able to avoid paying origination fees at closing with a higher interest rate selection
You pay interest-only payments on the outstanding loan principal during construction
Loans don’t tie up builders’ funds and could potentially reduce the cost of the home
What you'll need to consider:
Single-unit, detached, primary residences and second homes are eligible
Loans may be for new construction, renovation of existing homes and new purchases, including teardowns
Fixed-rate or adjustable-rate products with a one-time interest rate float down option
When construction is complete, the loan will convert into a permanent phase subject to meeting qualification standards of the permanent product; updated documentation may be required at the time of conversion
$3 million maximum loan amount available for certain loan programs (some programs have lower maximum loan amounts)
These loans are available in Alabama, Arkansas, Washington, D.C., Delaware, Florida, Georgia, Maryland, Mississippi, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia and West Virginia
Monthly payments of interest only will not reduce the principal owed
Adjustable Rate Mortgage (ARM) products have interest rates that may increase after consummation.