* Disclaimer: All Loan programs, rates and terms can change without notice and are subject to credit and underwriting approval. Loan charts
highlight min/max constraints, assumptions & random scenarios only. We will always work hard to approve your loan but there are no guarantees of
any kind expressed or implied that any loan we be approved.
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Bring your vision to life with a Single Construction-to-
Permanent Loan Program!
For some, the ideal home exists only in our imagination. Why not make yours a
reality with a Single Construction-to-Permanent Loan Program designed to cover
home construction costs by dispensing money in “draws” at progressive stages of
WHAT IS A SINGLE CONSTRUCTION TO PERMANENT LOAN?
A Single Construction to Permanent (SCTP) loan is a home mortgage that can be used by the borrower to
close both the construction loan and permanent financing of a new home at the same time. They are
sometimes referred to as “construction to perm”, “single close”, “one time close”, “construction conversion,” or
even “all in one” loans.
HOW DOES A SINGLE-CLOSE CONSTRUCTION TO PERMANENT LOAN WORK?
The one thing that all these SCTP variations have in common, is that a SCTP offers both the interim
construction loan and the permanent 30 year loan under one Promissory Note and One Deed of Trust with a
single loan closing.
The borrower will sign the 30-year amortizing promissory note at the closing and at the same time sign a
modification agreement to that note. This agreement modifies the note from an amortizing to an interest-only
note, with interest due only on that amount that the Lender has actually disbursed in accordance with a
Construction Loan Agreement, based on the stage of construction.
REASONS TO CONSIDER CONSTRUCTION TO PERMANENT LOAN
1. YOU ONLY NEED TO QUALIFY ONCE
Gathering up all of qualification documents such as, pay stubs, W2’s, tax returns, bank statements, photo
IDs, and signing loan disclosures is both time consuming, confusing, and inefficient for your borrowers.
A traditional two-time close loan requires that a borrower qualify not two times, but oddly enough three times
– Once for the construction loan; once for the permanent “take-out” loan to prove that they can pay off the
construction loan; and then, again a year later when the house is actually complete because now the original
documents and approval have all expired!
A SCTP loan only requires that you go through the process one time and one time only!
2. FIXED INTEREST RATES
With a SCTP loan the interest rate during construction is pre-determined AND the interest rate of the
permanent loan that the construction loan will convert to is also pre-determined when the borrower closes the
3. REDUCED CLOSING COSTS
Mortgage loan closing costs can be a significant expense to the borrower, usually 3% to 4 % of the loan
amount. Closing one loan instead of two loans can save you thousands of dollars. This savings can then be
better spent on things like landscaping, furnishings, window coverings, utility deposits, etc., usually not
included in the cost of construction.
4. SINGLE APPRAISAL VALUATION ELIMINATES SURPRISES
Two-Time Close loans are usually going to require two separate appraisals, by separate appraisers, both paid
for by the borrower. The first is done for the construction loan and the second done for the “take-out” loan
when the house has been completed, usually around a year later.
The maximum loan amount is determined by calculating the loan to value ratio (i.e., divide the loan amount by
the value and you will get the loan to value.) If the second appraisal comes in at a value less than the original,
then the borrower will have to make up the difference in cash – a big surprise!
A SCTP loan usually only requires one appraisal prior to closing the SCTP loan. This means no surprises
when the house is completed.
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1st Florida Lending Corp., a registered Mortgage Lender Orlando servicing only the State of Florida, offering over 48 loans programs
including Conventional Loans, Non-Conforming Loans, FHA Loans, VA Loans, USDA Loan, Self-Employed Loans, Bank Statement
Loans, No-Doc Loans, Reverse Mortgage Loans, ITIN Loans, Rental Investment Loans, to name a few and specializing in Bank
Statement Loans or “stated loans” requiring no Tax Return verification and much more. * No broker or lender fees are for FHA,VA, USDA
and Conventional loan types Main Office: 2151 Consulate Dr. * Suite 8 * Orlando, FL., 32837 * Telephone (800) 655-1345 * (407)
300-2558 * Fax (877) 401-9955We are approved lenders for all Government Loans and registered with the Florida Office of Financial
Regulation - # MLD106When Banks Say No ! We Say YES ! ® is a registered trademark owned by 1st Florida Lending Corp.
MORTGAGE GLOSSARY OF TERMS
USDA LOAN INFORMATION
LEARN ABOUT CREDIT
REPAIR YOUR CREDIT
REFINANCING YOUR LOAN
MORTGAGE CREDIT EVENTS
CONDO PURCHASE WARNINGS
THE LOAN PRE-APPROVAL PROCESS
LOAN QUOTE NOW
SUPER JUMBO LOANS - 100% LTV
BANK STATEMENT LOANS - 90% LTV
JUMBO LOANS - 95% LTV
INVESTMENT PROPERTY LOANS - 85% LTV
STATED INCOME HOME LOANS - 85% LTV
FOREIGN NATIONAL LOAN 80% LTV
ASSET BASED MORTGAGE LOAN
FIX AND FLIP BRIDGE LOANS
COMMERCIAL PROPERTY LOANS
ITIN TAX ID LOAN
STATED INCOME LOAN
VA LOANS 100% LTV
ITIN TAX ID LOAN
REVERSE MORTGAGE LOAN
PUERTO RICO BORROWERS
NO DOC LOANS