Construction to Permanant loan

[John DAmbrosio]

Can anyone provide information on new construction to perm financing for the purpose of renting the property. I already own the land and I am not going to live at the residence.  All the lenders I have contacted just perform construction loans for the purpose of the borrower to live at the house.  

[Mike Burkett]

@John DAmbrosio  If you are looking for a single loan with a single closing that funds the construction of your new house and turnps into a long term amortizing loan once you have a tenant in place, the only place I'm aware of with a loan like that is a local community bank.   If you have the financial statement to qualify, that is where I would go.  

It is more typical to get a construction loan and once completed and occupied, that loan is paid off and replaced with a long term mortgage.  We were doing a lot of construction loans prior to the pandemic.  The secondary market of people buying those loans shut down and we are waiting for the market to reopen before we begin offering those loans again.