Construction to Permanent Loans in Ridgeland, MS
One Loan, One Closing, and a Clear Path from Building to Homeownership
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A construction to permanent loan allows Ridgeland homebuyers to finance the construction of a new home and the long-term mortgage through a single loan. Rather than navigating separate construction and mortgage financing, this approach combines both phases into a single, organized process that provides clarity from early planning through move-in.
How a Construction to Permanent Loan Works
This loan begins as a construction loan, with funds released in stages as your home is built. These stages are commonly referred to as draws and are tied to progress milestones throughout the build. During construction, you typically make interest-only payments based on the amount drawn.
Once construction is complete, the loan automatically converts into a permanent mortgage. At that point, your payment structure becomes more like a traditional home loan, providing long-term stability without a second closing.
Why Ridgeland Homebuyers Choose Construction to Permanent Loans
Many buyers in Ridgeland choose this loan structure because it simplifies the homebuilding process. One loan and one closing can reduce paperwork, limit unnecessary costs, and provide a smoother overall experience during construction. This structure also allows buyers to plan confidently for life after the build is complete.
This option is especially appealing for buyers building on their own land or working with builders familiar with the Ridgeland and Madison County market.
What to Know Before Choosing This Loan
Construction-to-permanent loans require thoughtful preparation. Builders must be reviewed and approved, budgets must be detailed, and timelines should be realistic. Because this loan covers both construction and long-term financing, early decisions are critical to the project’s overall success.
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 experience. If you value fewer closings, predictable transitions, and a clear path from construction to ownership, a construction-to-permanent loan may align well with your goals.
Your Path with Honor Home Loans Ridgeland
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 remains involved to provide guidance 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.
Ready to Build in Ridgeland?
Our Ridgeland mortgage team can help you determine whether a construction-to-permanent loan fits your building plans and financial goals.
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Why Ridgeland Homebuyers Trust Honor Home Loans
Homebuyers throughout Ridgeland and Madison 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!
Proudly Serving Those Who Serve Our Communities
We proudly serve homebuilders, veterans, first responders, educators, and families throughout Ridgeland, Madison, Canton, Flowood, Jackson, and all of Madison County.