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Construction-to-permanent vs investor construction loan: what is the difference?

Short answerA construction-to-permanent loan finances building your own primary residence and converts to a regular mortgage when construction ends, with one closing. Investor ground-up construction loans fund speculative builds or flips, with interest-only payments and a balloon or refinance exit. Owner-occupant construction loans have stricter oversight of the builder and budget.
Reviewed by Juan Fernando Romero, NMLS 2557318Updated

The details

Construction-to-permanent loans typically require a licensed builder, detailed plans, and a fixed-price contract.

Investor construction loans focus on the after-repair value and the borrower's experience rather than personal income.

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