Embedded Files
Fannie Mae Construction Loan Overview
Fannie Mae Construction Loan Overview
Product Features:
Product Features:
Two types of Construction-to-Permanent (C-to-P) financing: Single-Closing and Two-closing transactions. These options can help lenders grow their business by closing the housing supply gap in the communities they serve. This financing option allows borrowers to design homes and build them to meet their needs.
Single-Closing Transactions
Single-Closing C-to-P transactions allow lenders to underwrite and close on a home construction loan and permanent financing at the same time using one set of closing documents. This benefits borrowers because the transaction is:
Affordable: Borrowers only pay for one closing where they can lock in their permanent interest rate. If the interest rate falls during construction, it can be updated when the loan converts to a mortgage.
Convenient: Only one appointment is required to sign the closing paperwork for both the construction and mortgage loans.
Flexible: C-to-P loans allow borrowers to create customized solutions at any scale, from site-built homes to manufactured homes.
Two-Closing Transactions
When a customer comes to a lender with an existing home construction loan that they need to convert to a mortgage loan, lenders can use a two-closing loan to roll the existing loan into a permanent mortgage. The original construction financing can come from any lender. In this case, the borrower will have been through two-closings (one closing on the construction loan and the second closing on a mortgage).
This flexibility allows borrowers to shop for the best terms on their construction financing without having to commit to terms with their mortgage lender upfront.
Quick Links
Quick Links
Construction-to-Permanent FAQs
Forms
Forms
Multistate Construction Contract (Form 3734) Multistate Construction Loan Agreement (Form 3735)
Multistate Riders and Addenda (Form 3737) Multistate Riders and Addenda (Form 3738)
Appraisal Update and/or Completion Report (Form 1004D) Modification Agreement - Adjustable Interest Rate (Form 3161)
Modification Agreement - Fixed Interest Rate (Form 3179) Special Purpose Documents - Model legal documents
Training
Training
Construction-to-Permanent Financing Overview eLearning Course Data Entry Instructions for C-to-P Transactions Job Aid
Selling Guide References
Selling Guide References
B5-3.1-01: Conversion of C-to-P Overview
Marketing
Marketing
Fannie Mae Single-Closing C-to-P
Fannie Mae Single-Closing C-to-P
These are in addition to the items located in the Overview
These are in addition to the items located in the Overview
Quick Links
Quick Links
Single-Closing C-to-P Product Matrix Single-Closing Lender Factsheet
Training
Training
Single-Closing Financing Transaction Process Guide
Selling Guide References
Selling Guide References
B5-3.1-02: Conversion of C-to-P: Single-Closing Transactions
Fannie Mae Two-Closing C-to-P
Fannie Mae Two-Closing C-to-P
These are in addition to the items located in the Overview
These are in addition to the items located in the Overview
Training
Training
Two-Closing Financing Transaction Process Guide
Selling Guide References
Selling Guide References
Page updated
Report abuse