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.
Advantages of CP Loans:
- 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
- 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
- Construction loans may be for new construction, home improvements and new purchases, including teardown
- Fixed-rate or adjustable-rate products with a one-time interest rate float down option
- When construction is complete, the construction 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.