Strategy-Driven Construction Financing
C2P Loans
C2P loans are the blueprint for building your custom future. This “one-time close” solution combines your lot purchase, construction financing, and long-term mortgage into a single, seamless transaction. By locking in your permanent rate before the first shovel hits the dirt, we eliminate the risk of rising interest rates during your build.
The Smart Advantage for New Builds
Unlike traditional two-close construction loans, the C2P approach significantly reduces your closing costs and simplifies your underwriting to a single approval. With my background in analytics, I help you manage the draw schedule and interest-only period to ensure your project remains financially lean from foundation to finish.
Single Closing
One application, one set of closing costs, and one appraisal. This efficiency protects your equity and keeps your project on a predictable timeline.
Interest-Only Period
During the construction phase, you only pay interest on the funds as they are disbursed. This keeps your monthly out-of-pocket expenses low while your home is under construction.
A Strategic Approach to C2P
Many lenders view Construction-to-Permanent (C2P) loans as “high-risk” or overly complex, but I see them as the ultimate strategic advantage for building equity. Utilizing my background in analytics, I help you evaluate the total cost of construction—factoring in draw schedules and interest-only phases—to ensure your project is a sound financial investment before the first shovel hits the dirt.
I’m persistent—construction lending requires intense coordination between you, your builder, and the bank. I manage those moving parts with the same rigor I used as a VP of Strategy, ensuring your project stays on track. Consistency is how I build the foundation of your trust.
Did You Know?
The “Permanent” phase of a C2P loan can be structured as a Conventional, VA, or even a Jumbo loan. This flexibility allows us to tailor the final mortgage to your specific long-term financial strategy once your home is complete.
“Building a home is inherently stressful, but Mike’s strategic approach to our C2P loan gave us a level of certainty we didn’t think was possible. He managed the numbers so we could focus on the design.”
— The Miller Family, Custom Build in Prosper, TX
FAQs
A pre-qualification is a surface-level estimate based on unverified data. My strategic pre-approval involves a deep dive into your tax returns, credit data, and assets. By running this “stress test” upfront, we identify and clear potential underwriting hurdles before you ever make an offer, giving you the same negotiating power as a cash buyer.
It comes down to a “break-even” analysis. FHA is excellent for lower down payments and flexible credit, but it carries permanent mortgage insurance. Conventional loans often have slightly higher rates for lower credit scores but allow you to cancel your PMI once you reach 20% equity. I provide a side-by-side analytical comparison to show which option costs you less over your expected time in the home.
Yes. While many retail banks strictly require 20% down for high-balance loans, my access to specialized “Non-Conforming” channels allows for 10% or 15% down payment options for qualified borrowers. This is a strategic move for clients who prefer to keep their capital deployed in the market rather than tied up in home equity.
C2P is a “one-time close” process. We secure your lot, your builder’s contract, and your long-term mortgage all at once. You lock in your permanent interest rate before construction begins, protecting you from market spikes. During the build, you only pay interest on the funds actually disbursed to the builder, keeping your monthly carry costs low.
Consistency is the key to a smooth closing. Avoid making large, undocumented deposits into your bank accounts, do not apply for new credit (like a car or furniture), and maintain your current employment status. Even a small change in your financial profile can trigger a re-underwrite, so I recommend consulting with me before making any significant financial moves during the process.