Let’s face it: House hunting can be tough. Whether supply is too low, prices are too high, or you just have a very specific idea for your next home, it can be easy to get frustrated with the market. But instead of moving into someone else’s version of your vision, why not carry out your plan to a T? Instead of looking for your dream home, create it.

It’s understandable if your first question is how difficult it might be to finance such a project. Residential mortgages are usually only granted on existing structures, which means you would need to take out a construction loan for the building phase. It’s only after the house is finished when you would take out a home loan, using the home itself as collateral just like a typical mortgage. But taking out two separate loans means more time, energy, and money—any of which might already be in short supply.

Don’t rule out rolling the blueprints just yet. There’s a more convenient loan¹ designed for this exact scenario that could be just the thing to bring your dream to life. A construction-to-permanent loan alleviates the pain points of navigating the requirements of two separate loans by combining everything into one: It begins as a construction loan, and converts into a permanent mortgage upon completion and inspection.

What are the benefits of a construction-to-permanent loan?

• Save time. Don’t worry about going through the loan process a second time once your home is complete—your construction loan will automatically convert into a permanent mortgage.
  
  
• Save money. One loan means one set of closing costs. Keep that extra cash for a rainy day, or put more toward making your home the one of your dreams.
  
  
• Location, location, location. Rather than finding the perfect home in your desired location, start from square one by deciding where you want to live first. Once you know you’re right where you want to be, you can begin bringing your plan to life.
  
  
• Reduce risk of changes in the market. When taking out a separate construction loan first, there is some risk involved for how the market might change before construction is completed. It might become more difficult to secure a permanent mortgage, or you could get stuck with a higher interest rate when you’re ready to take out a second loan. A construction-to-permanent loan locks you into a rate and program from the very beginning, and assures you’ll have your mortgage squared away when it’s time to move in.
  
  
• Weigh a wide range of options. With buydowns and long-term rate locks, choose the loan that best works for you.
  
  
• Consider how to maximize your investment. Do your research before beginning construction, and learn more about what buyers like you are looking for in a home. That way, you can feel confident in being able to get a return on your investment should you wake up one day with a new dream in mind.
  
  
• Have the home you truly want. With a new construction, you’re in the driver’s seat. Customize every square foot of your home to include the details you’ve always wanted.

A construction-to-permanent loan gives you the power and freedom to create a future for yourself in your home, and saves you precious time and money in the process. This presents the perfect opportunity for you to begin building your dream from the ground up.

How can Wintrust Mortgage help you realize your dream home?

We offer a wide range of construction-to-permanent loan options to help you find the right solution for your individual needs.

Are you ready to break ground on your forever home? Learn more by becoming a PremierBuyer^™2 to help you get a better idea of your budget and what your monthly payments could look like. It’s easy to apply—get started below!