WHAT IS A CONSTRUCTION TO PERMANENT LOAN?

WHAT IS A CONSTRUCTION TO PERMANENT LOAN?

Dan Larson - Monday, February 25, 2019
WHAT IS A CONSTRUCTION TO PERMANENT LOAN?
A construction to permanent loan (also called CPL loan) is one loan that allows you to finance the construction of the house and then converts to a permanent mortgage loan. It functions as a line of credit to pay for the construction costs at each stage of the building process, and you pay interest on the amount you have drawn out. When the house has been completed and you have your occupancy permit, the loan switches to a monthly mortgage…