Construction-to-Permanent Loan
Rates, fees and programs are subject to change without notice.

Need a Construction niche?...We've got it!

Ashton Klein Mortgage is approved with nation's premier Construction-to-Permanent lenders.

We specialize in construction loans; you only work with our Construction Specialist.

• Excellent products
• Excellent service -  Fast turn times
• Fast approvals



Consumers Frequently Asked Questions: What is a Construction-to– Permanent (CTP) Loan?    Often, getting approved for a construction loan can be    tricky. In many cases, two loans are required--one for    construction and one for permanent financing. Usually    you will have to pay closing costs on both loans, not to    mention the extra paperwork, time and hassle involved.    But we offer a single-close Construction-to-Permanent    Loan that combines both construction and permanent    financing into one loan. Construction-to-Permanent Loan    allows for a construction period of 6 to 12 months. Other    options are also available. And when your project is    complete, the loan simply converts to a permanent    mortgage. Besides a (CTP) Loan, what other costs may be   associated with the construction of my home?    In addition to the contract price, it is common for a    construction lender to build a contingency reserve into    the loan. This is a specified percentage or dollar amount    usually required by the lender in case of unforeseen    circumstances that could negatively impact the    construction of your home. The amount required is    usually based on a percentage of the contract price, on-    site costs or loan amount.    Additional costs will vary, and may include construction    loan closing costs and fees and special insurance    requirements. But don't worry; our Construction-to-    Permanent Loan includes on-site costs, off-site costs,    closing costs, interest reserve, contingency reserve and    lot purchase or value.   What does the term "cost plus" mean? If I contract    for work to be done, doesn't it automatically mean    that everything is covered?    Not always. Some contracts are referred to as "cost    plus" because they guarantee the price only for the    contractor's supervision of the job and may exclude a    portion of the costs for materials and labor. Other    contractors may cover both labor and materials but    include a clause that permits the contractor to charge    more if there are material shortage or increases in costs.    You will want to clearly define with your contractor what    is covered and is not covered. When will I have to make loan payments?    Construction-to-Permanent Loan program includes an    interest reserve, which means that you will not have any    payments out of pocket during the construction period.    We will incorporate an interest reserve account within    the loan amount. Depending on how quickly you use    your construction funds, there may be sufficient funds    within the construction loan to carry you through the    entire construction period. As each construction project    is unique, you will need to discuss your options with    your Construction Loan Specialist at ASHTON KLEIN    MORTGAGE. Will the payments on my construction loan include    principal and interest?    Not necessarily! You may have interest only payments    until the house is completed. Generally speaking, this    means that interest is charged only on the amount of    funds used. Interest on our Construction-to-Permanent    Loan is charged based on the funds used. Payments are    interest only during the construction period, converting to    principal and interest payments upon completion of the    home. What will my construction lender need in order to    review my loan request?    In order to process your requested loan for you to built    your dream home. ASHTON KLEIN MORTGAGE will    need to see that dream as clearly as you do. Therefore,    in addition to standard credit documentation, we will    need copies of the following documents to start the    process:       1. Final plans and specifications. “These are needed in       order to obtain an appraisal”    2. Purchase contract for the lot (or Settlement    Statement if you've already purchased it)    3. Property profile (description of materials)    4. Line Item Cost Breakdown from the General    Contractor    5. Construction Time Schedule “Period of the    construction”    6. General Contractor's construction contract    7. Copy of the General Contractor’s Liability Insurance    “Minimum requirements $1,000,000.00” and Workers    Comp Insurance    8. List of all trades Licensed Sub-Contractors    9. Copy of General Contractor's license    10. General Contractor's resume, statements and    application    Keep in mind that you need to secure final approval for    your submitted plans, and obtain all necessary    Construction Permits from the city or county who has    jurisdiction.