Construction to Permanent Loans in Florence, AL
One Loan, One Closing, and a Clear Path from Build to Move-In
Complete our easy Construction-to-Permanent Loan Qualifier.
Explore personalized options tailored to your unique situation.
Compare rates and terms to find the perfect fit for you.
Choose the offer that aligns perfectly with your goals.
A construction to permanent loan allows Florence homebuyers to finance the building of a new home and the long-term mortgage with a single loan. Instead of securing separate construction and mortgage financing, this option simplifies the process by combining both phases into one clear, structured path from groundbreaking to move-in.
How a Construction to Permanent Loan Works
This loan begins during the construction phase, with funds released in stages as your home is built. These stages align with progress milestones, allowing your builder to move forward while maintaining financial oversight. During construction, payments are typically based only on the portion of funds that have been drawn.
Once construction is complete, the loan automatically converts to a permanent mortgage. At that point, your payment structure becomes similar to a traditional home loan, providing long-term stability without requiring a second closing.
Why Florence Homebuyers Choose Construction to Permanent Loans
Many buyers in Florence prefer this loan because it reduces complexity during an already demanding building process. One loan and one closing can mean fewer fees, less paperwork, and a smoother overall experience. This structure also allows buyers to plan with confidence, knowing how their financing will transition upon completion of construction.
This option is especially appealing for buyers building on their own land or working with local builders who understand the Florence market.
What to Know Before Choosing This Loan
Construction-to-permanent loans require careful planning. Builders must be approved, budgets must be detailed, and timelines should be realistic. Because this loan covers both construction and long-term financing, accuracy at the beginning is critical. Working with a lender experienced in construction lending helps keep the process organized and predictable.
Is a Construction to Permanent Loan Right for You?
This loan is often a good fit for buyers who want to build a custom or semi-custom home and prefer a simplified financing process. If you value clarity, fewer closings, and a smooth transition from construction to homeownership, a construction-to-permanent loan may align well with your plans.
Your Path with Honor Home Loans Florence
Our process begins by understanding your build plans, budget, and timeline. We coordinate with you and your builder to review documentation, establish draw schedules, and outline expectations. From the first phase of construction through the conversion to permanent financing, our team remains involved to ensure a clear and supported experience.
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 Florence?
Our Florence mortgage team can help you determine whether a construction-to-permanent loan fits your building plans and financial goals.
Get clarity before construction begins.
Understand the process from start to finish.
We help align financing with your construction timeline.
Speak with a Florence construction loan specialist.
Why Florence Homebuyers Trust Honor Home Loans
Homebuyers throughout Florence and Lauderdale County rely on Honor Home Loans for clear communication, steady guidance, and financing solutions that are organized 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 Florence, Muscle Shoals, Sheffield, Tuscumbia, Rogersville, and all of Lauderdale County.