Sometimes your dream home doesn’t exist yet — you have to build it. Whether you’re customizing every detail or working with a builder on a semi-custom plan, financing new construction can feel complex. That’s where a construction-to-permanent loan (or C2P loan) makes it simple.
At Doma Loans, we streamline the entire process — one application, one approval, one closing — so you can focus on building your dream home, not juggling multiple loans.
🧱 What Is a Construction-to-Permanent Loan?
A construction-to-permanent (C2P) loan is a single mortgage that covers both the cost of building your home and the permanent financing once construction is complete.
Instead of getting a short-term construction loan (that must be refinanced later), you close once, and the loan automatically converts into your long-term mortgage when the home is finished.
Key benefits:
- One closing: Fewer fees and less paperwork
- One qualification: No need to re-qualify after construction
- Rate protection: Lock in your interest rate before building
- Smooth transition: Converts automatically to a fixed-rate or ARM mortgage
⚙️ How It Works
- Apply and Close Once:
You qualify for the loan upfront, just like a standard mortgage. Doma Loans coordinates builder approval, project review, and appraisal. - Draws During Construction:
Funds are released in stages (“draws”) as the builder completes work milestones. You’ll pay interest only on what’s been drawn during the build period. - Conversion to Permanent Loan:
Once construction wraps up, your loan automatically converts to your long-term mortgage with no second closing or extra fees.
🏠Types of Construction-to-Permanent Loans
Conventional C2P Loan
- Down payment: Typically 5%–20%, depending on borrower profile and project cost
- Credit score: 680+ recommended
- Max loan limit: Standard conforming or jumbo thresholds apply
- Eligible property types: Primary residences and some second homes
FHA Construction-to-Permanent Loan
- Down payment: As low as 3.5%
- Credit score: 580+
- Eligible property: Primary residence only
- Ideal for buyers needing a smaller down payment or more flexible credit terms
VA Construction-to-Permanent Loan
- Down payment: 0% for eligible veterans
- Credit score: 620+ typical
- Eligible property: Primary residence only
- Backed by the U.S. Department of Veterans Affairs — an outstanding option for service members building their forever home
🧮 Typical Loan Structure and Limits
| Feature | Typical Range |
|---|---|
| Loan Term | 30 years (after conversion) |
| Construction Phase | 6–18 months |
| Interest Payments | Interest-only during construction |
| Disbursements (Draws) | 4–6 stages based on progress |
| Completion Deadline | Usually within 12–18 months of closing |
| Down Payment | 3.5% (FHA) to 20% (Conventional) |
| Credit Score Minimum | 580–700 depending on loan type |
đź’ˇ Why Choose Doma Loans for Construction-to-Permanent Financing
🧠One-Time Close Convenience
Doma Loans handles everything from land purchase to final home financing — with one streamlined closing and a single set of closing costs.
🧱 Transparent Draw Tracking
Our digital platform keeps you and your builder aligned — view project milestones, disbursement schedules, and inspection updates in one place.
đź”’ Rate Protection During Build
Lock in your mortgage rate before construction begins to protect against market fluctuations.
🛠️ Builder Coordination and Support
We vet builder credentials, manage documentation, and ensure draw requests meet standards — saving you time and potential stress.
đź’¬ Real Guidance from Real Experts
Our construction loan specialists work with you from blueprint to move-in, helping ensure every phase stays on track and within budget.
🏡 Why C2P Loans Make Building Easier
A construction-to-permanent loan turns the complex process of homebuilding into a single, predictable experience. With Doma Loans, you’ll enjoy simplicity, transparency, and control from the first draft of your floor plan to your first night in your new home.
Ready to Build Your Dream Home?
Let’s simplify your construction financing — and your move-in process.
👉 Start your construction-to-permanent pre-qualification at mortgage.new or call 888-658-3662 to connect with a Doma Loans specialist.
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