Are you planning to build a new home on land you already own? A bridge-to-perm loan from Mortgage Capital could be the ideal financing solution. Also known as construction-to-permanent or single-close loans, these loans streamline the process by combining construction funding and a permanent mortgage into one. With only one closing, you save time and money on closing costs while simplifying your path to homeownership.

    Why Choose a Bridge-to-Permanent Loan?

    • Single Closing: Avoid the hassle and expense of separate closings for construction and the mortgage.
    • Interest-Only Payments During Construction: Lower your financial burden while building your dream home.
    • Smooth Transition: Your loan automatically converts to a standard mortgage upon construction completion.

    How It Works

    1. Construction Phase:
      • Begin with your down payment to kick-start construction.
      • Once the down payment is used, funds are drawn from your loan in phases, or “draws,” as work progresses.
      • Payments during this phase are interest-only.
    2. Inspections and Progress Checks:
      • Before each draw, the lender inspects the construction to ensure progress aligns with the schedule.
      • Funds are reimbursed to you or your builder for approved costs, such as labor and materials.
    3. Transition to Permanent Mortgage:
      • After construction, a final inspection ensures all work meets building codes and standards.
      • The loan seamlessly converts to a traditional mortgage, allowing you to begin regular payments without additional steps.

    Bridge-to-Perm vs. Other Loan Options

    • Stand-Alone Construction Loans: Require separate loans for construction and the permanent mortgage, leading to multiple closings and added costs.
    • Home Equity Line of Credit (HELOC): HELOCs are an option for smaller projects but often come with longer terms and higher total interest costs compared to construction loans.

    With a bridge-to-permanent loan, you enjoy a simplified process, consolidated costs, and peace of mind knowing your financing is already in place.

    Why Work With Mortgage Capital?

    At Mortgage Capital, we understand that building your dream home can feel overwhelming. Our team specializes in bridge-to-permanent loans, guiding you through every step of the process with expert advice and personalized support.

    • Competitive rates and terms.
    • Knowledgeable loan specialists who answer your questions and keep the process stress-free.
    • Flexible financing tailored to your unique needs.

    Ready to Get Started? Contact Us Today!

    Our experienced team is here to help you turn your dream home into a reality. Whether you’re just getting started or ready to apply, Mortgage Capital is your trusted partner. Call us on 561-300-0380 today.Â