Whether you want to build a new home or make renovations to your existing home, consider a construction to permanent (CP) loan as a single, convenient loan option that will cover everything you need. This loan type consolidates your closing costs, saving you money in fees. It effectively transitions from a construction loan to a mortgage during the permanent or live-in stage of your home. This means that, as your home is being built, you pay interest only on the amount disbursed. But once you move in, you’ll be able to count on a monthly principal and interest mortgage payment plan.

Most construction loans require that you make two closing payments and separate fees for each type of loan: construction and permanent. Because the typical process for construction loans requires both loan types, you may not have the option of negotiating a locked – or max – mortgage rate upfront. This means that if rates go up during your construction, you may be stuck at the highest rate when you apply for a separate, permanent mortgage loan. Furthermore, construction can be expensive and rarely finishes under-budget. If your project has impacted your financial circumstances, you may find it hard to get approved for a mortgage loan after all is said and done.


Construction–Permanent Loans, The Shore United Bank Way

To save you time and money, we’ve combined the process of getting – and paying for – loans during your residential construction process. You’ll only need to sign one simple modification agreement to effectively transfer the terms of the loan from the construction phase to the permanent phase. During the construction phase, we offer a locked interest, 12-month draw period where interest-only payments are required. After that, you’ll transition to monthly principal and interest payments like any other mortgage loan. Building your dream home shouldn’t be a financial hassle. At Shore United Bank, we’re here to help you accomplish your goals.

Find out more about our CP loans  |  Find a branch near you to apply today


List of Mortgage Loan Originators (NMLS)


All loans are subject to credit approval, and the borrower must maintain insurance on the property securing credit.