Build your dream home in Charlotte with a construction-to-permanent loan. One closing, one set of closing costs — covers construction then automatically converts to your permanent mortgage. Available with conventional financing and VA 100% financing for eligible veterans with $0 down.
A construction-to-permanent loan solves a key problem: traditional construction loans require two closings — one when construction starts and another when it's complete. That means two sets of closing costs, two rounds of paperwork, and rate uncertainty on the permanent loan.
With a construction-to-permanent loan you close once. Your rate is locked at the initial closing. During construction you pay interest only on the funds drawn — so your payment stays low while the home is being built. Once construction is complete and the certificate of occupancy is issued, the loan automatically converts to your permanent mortgage.
The big advantage: you know your permanent rate before the first nail is driven.
The standard construction-to-permanent program for Charlotte buyers. One closing, rate locked upfront, interest-only payments during construction. Once the certificate of occupancy is issued, the loan converts to a conventional mortgage with no second closing required.
One of the most powerful and underused VA benefits. Eligible veterans and active-duty service members can build a brand new home in Charlotte with $0 down payment — using the same VA entitlement as a standard purchase loan. No PMI, competitive rates, and the funding fee can be financed.
| Feature | Conventional Construction | VA Construction |
|---|---|---|
| Down payment | 5–20% | ✓ $0 — none required |
| Min. credit score | 680+ | 620+ |
| Mortgage insurance | PMI if <20% down | ✓ None — ever |
| Funding fee | None | VA funding fee (financeable · waived if disabled) |
| Closings | ✓ One closing | ✓ One closing |
| Rate lock | ✓ Locked at closing | ✓ Locked at closing |
| During construction | ✓ Interest-only on draws | ✓ Interest-only on draws |
| Builder requirement | Licensed & approved builder | VA-approved builder required |
| Property types | Primary, 2nd home | Primary residence only |
| Eligibility | Any qualified buyer | Veterans & active-duty only |
| Best for | Buyers building primary or second home with good credit | Veterans building primary home — best financing available |
★★★★★"Trevor and his team were very responsive, prompt, and gave great advice. They made sure all the moving parts of getting my loan closed were moving along together at a good pace."
★★★★★"Trevor worked a lot of long hours to pull this together and we are so grateful!"
★★★★★"Trevor was able to assist me when needed. He made sure to help me understand both the process of securing a mortgage but also helped to educate me on the specific proposals."
A construction-to-permanent loan covers the cost of building your home and then automatically converts to a permanent mortgage when construction is complete — all in one closing. During construction you pay interest only on drawn funds. Once the certificate of occupancy is issued, the loan converts at the rate you locked at closing.
Yes — this is one of the most powerful and underused VA benefits. Eligible veterans and active-duty service members can build a new home in Charlotte with no down payment, no PMI, and competitive rates. The VA funding fee can be financed into the loan and is waived entirely for veterans with a 10%+ disability rating.
Conventional construction loans in Charlotte typically require 680+ credit. VA construction loans require 620+ for eligible veterans. Construction loans have slightly higher credit requirements than standard purchase loans because the lender is financing a home that doesn't yet exist.
Yes. Conventional construction loans require a licensed builder who meets lender approval criteria. VA construction loans require a VA-approved builder. We can help you understand what documentation your builder needs to provide and what the approval criteria look like so there are no surprises.
Construction loan approval typically takes 30–45 days from application. You'll need a signed builder contract, construction plans and specs, a build timeline, and builder's risk insurance in addition to standard mortgage documents. Starting early is important — we recommend beginning the process as soon as you have a builder selected.
During construction you pay interest only on the funds that have been drawn. Since draws happen in stages as work is completed, your payment starts low and increases as more of the loan is disbursed. This is more manageable than paying both rent and full mortgage payments during the build period.
Ready to discuss building your Charlotte home?
Book a Free Construction Loan Consultation →Conventional or VA — one closing, rate locked before construction starts. Free 15-minute consultation to discuss your build plans and financing options.