Construction to Permanent Loan
Definition
- A loan that pays first for construction, then for a long-term, traditional mortgage, as distinct from a construction loan followed by a separate mortgage loan.
Synonyms
construction loan
Related Terms and Acronyms
- Holdback — Definition,
- A dollar amount that is withheld by the lender during construction of a home to ensure construction is satisfactory at every stage. The amount of hold-back is typically equivalent to the estimated cost to complete the construction.
- Takeout Mortgage Loan — Definition, Important,
- A long term mortgage loan that is advanced to borrower on completion of construction or in compliance with any other conditions in the loan commitment. The funds are normally used to pay off or take out the construction lender.
