Loan program
Construction-to-permanent loans
One loan that funds construction and converts to long-term financing at completion or stabilization.
A construction-to-permanent (or "one-time close") structure funds the construction phase with interest-only draws and then converts to a permanent, amortizing loan once conditions such as completion, certificate of occupancy and, for income properties, minimum occupancy or debt service coverage are met.
Why sponsors use it
- One closing and one set of closing costs
- Reduces refinance risk at completion
- Permanent terms may be set at closing or at conversion, depending on the lender
What lenders look for
Detailed budget and schedule, general contractor qualifications, contingency, sponsor experience and liquidity, and a realistic lease-up plan. Draws are released against inspected progress.
Run the numbers with the construction budget calculator.
Get financing from GlobusAll programs
Educational information only. Not legal, tax, municipal-advisory, investment or lending advice, and not an offer or commitment to lend or to issue bonds. District rules, thresholds and timelines vary by state and municipality; consult bond counsel and qualified advisors. Calculator outputs are illustrative estimates, not quotes or approvals.
Globus Capital Advisors
Considering Construction-to-permanent loans?
Globus Capital Advisors, a commercial loan broker, works with bank, agency, CMBS, debt-fund, SBA and bond-market lenders and can tell you whether this structure fits your deal.