Let’s face it: House hunting can be a nightmare. 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 reaction is the headache it might sound like to finance such a project. The most familiar type of mortgage is one granted on existing structures, and therefore can’t be used to buy property and build a house. This means you would need to take out a construction loan for the building phase. It’s only when the house is finished when you would take out a home loan, using the home itself as collateral just like a typical mortgage. But, having to take out two separate loans means more time, energy, and money—any of which might already be in short supply.
Don’t rule out rolling out the blueprints just yet. Leveraging a more convenient loan designed for this exact scenario could be just the thing to bring your dream to life. A construction-to-permanent loan alleviates the pain points of navigating the various 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?
When the housing market heats up, a construction-to-permanent loan could be just the thing to sidestep the competition. It 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.
Are you ready to break ground on your forever home? Learn more by getting in contact with our loan experts to discuss your options.
Restrictions apply. Program, rates, terms and conditions are subject to change at any time and without notice. All approvals are subject to underwriting guidelines. Wintrust Mortgage is a division of Barrington Bank and Trust, N.A., a Wintrust Community Bank NMLS #449042.