Construction to Permanent Loans in Lexington, KY
One Loan, One Closing, and a Straightforward Path from Build to Homeownership
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A construction to permanent loan allows Lexington homebuyers to finance the construction of a new home and the long-term mortgage through a single loan. Instead of managing separate construction and mortgage financing, this option combines both phases into a single, streamlined process, reducing complexity from the earliest planning stages through move-in day.
How a Construction to Permanent Loan Works
This loan begins during the construction phase, with funds released in stages as your home is built. These staged payments align with construction milestones and help keep the project moving forward while maintaining financial oversight. During construction, payments are typically based on the portion of funds that have been drawn.
Once the home is complete, the loan automatically converts to a permanent mortgage. At that point, your payment structure shifts to a traditional mortgage, providing long-term stability without a second closing.
Why Lexington Homebuyers Choose Construction to Permanent Loans
Many buyers in Lexington prefer this loan structure because it simplifies a complex process. With one application, one approval, and one closing, the construction and financing phases are more closely aligned. This approach can help limit unexpected costs, reduce paperwork, and provide a clearer financial roadmap during construction.
It is especially useful for buyers building on their own land or working with builders familiar with the Lexington housing market.
What to Know Before Choosing This Loan
Construction-to-permanent loans require thoughtful planning. Builders must be reviewed and approved, budgets must be detailed, and timelines should be realistic. Because this loan covers both construction and permanent financing, decisions made early in the process have long-term implications. Working with an experienced construction lender helps ensure expectations are clear from the start.
Is a Construction to Permanent Loan Right for You?
This loan is often a strong fit for buyers who want to build a custom or semi-custom home and prefer a simplified financing structure. If you value fewer closings, predictable transitions, and a clear line from construction to homeownership, a construction-to-permanent loan may support your goals.
Your Path with Honor Home Loans Lexington
Our process begins by understanding your building plans, budget, and timeline. We coordinate with you and your builder to review documentation, establish draw schedules, and clarify expectations. From the first phase of construction through conversion to permanent financing, our team stays involved to provide clarity and support at every step.
Disclaimer: The content on this page is based on regulations and information available at the time of posting, but may change without our knowledge. This content is intended for informational purposes only and does not constitute any legal or binding agreement.
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Why Lexington Homebuyers Trust Honor Home Loans
Homebuyers throughout Lexington and Fayette County rely on Honor Home Loans for clear communication, organized processes, and financing solutions that feel steady and well supported from the first conversation through closing.
She was so helpful and knowledgeable. She is so patient and kind! I know I asked her the same questions over and over again and she was always so positive. She made sure I was 100% confident with the knowledge she shared. She was always a call/text away!
Heather made everything easy and explained everything so I knew exactly what was going on daily. She was very knowledgeable and responsive to any questions I had. In my opinion, she went over and beyond to help me with anything I needed. She is a very caring person and wanted to make sure I was happy with the purchase of my new home. I would definitely recommend Heather to family and friends. She has been a true blessing for my family.
Heather and Charity made this great. That is why I chose this organization to finance my new home. It wasn’t the company…it was the people!
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