How Construction Loans Work

A construction loan funds the building of a new home in stages (called draws) as construction milestones are reached. Once the home is complete, the loan converts to a permanent mortgage — often in a single closing, saving you time and closing costs. CFC Mortgage guides you through every phase of the process.

One-Time Close vs. Two-Time Close

A one-time close construction loan combines the construction financing and the permanent mortgage into a single loan with one set of closing costs. A two-time close involves separate loans for construction and the permanent mortgage. We offer both options and will help you determine which is best for your project.

Key Benefits

• One-time close option — one set of closing costs
• Interest-only payments during construction
• Funds disbursed in stages as construction progresses
• Converts to a permanent mortgage upon completion
• Available for custom builds and spec homes
• Conventional, FHA, and VA construction programs available
• Local expertise in Sumner County building requirements