Construction to Permanent Loans with First Kentucky Bank
Build now, settle in later with our Construction to Permanent Home Loans.
One loan. One closing. From build to move-in. Save time, reduce stress, and enjoy the convenience.
Fill out our online inquiry form, contact a local lender, or visit a branch to get started today!
What Is a Construction-to-Permanent Loan?
A construction to permanent loan (also called a build-to-permanent loan or one-time close construction loan) finances both the building phase of your home and your permanent mortgage in one loan.
Instead of taking out a short-term construction loan and then refinancing later, you move seamlessly from construction to your mortgage with no second closing required.
In short: One loan. One closing. One simple process.
Why Choose First Kentucky Bank for Your Construction Loan?
✔ Ease – One Application, One Closing
Skip the hassle of two separate loans. Our streamlined process means less paperwork and fewer moving parts.
✔ Peace of Mind – Lock in Your Rate Before Construction Begins
Protect yourself from rising rates by securing your mortgage rate early—before your home is even built.
✔ Savings – Fewer Fees
With a single closing and no refinance later, you avoid extra costs and keep more of your money.
✔ Convenience – From Build to Move-In
Your loan automatically converts to a permanent mortgage once construction is complete—no surprises.
How Our One-Time Close Construction Loan Works
- Apply Once – Submit one application for both construction and your long-term mortgage.
- Close Once – One closing handles everything.
- Build Your Home – Funds are disbursed in stages as construction progresses.
- Move In – When construction is complete, your loan converts to a permanent mortgage automatically.
No refinancing. No second closing. Just a smooth transition into your new home.
Construction Loans You Can Trust
As a local community bank, First Kentucky Bank understands the housing market, builders, and neighborhoods in western and central Kentucky. Whether you’re building your first home, a custom home, or a family retreat, we’re here to guide you every step of the way.
We proudly serve customers looking for:
- Construction loans in western and central Kentucky
- Construction-to-permanent loans
- Home construction financing
- Build-to-permanent mortgages
- Local construction lenders
When you work with First Kentucky Bank, you get personal service, local expertise, and a lending team that’s invested in your success.
Is a Construction-to-Permanent Loan Right for You?
This loan is ideal if you:
- Want to finance a new home build
- Prefer one loan instead of two
- Want to lock in your rate before construction begins
- Are looking for fewer fees and a simpler process
If you’ve been asking:
- “Do I need two loans to build a house?”
- “How does a construction to permanent loan work?”
- “Can I lock my mortgage rate before building?”
—this solution was designed for you.
Construction Loan FAQs
- What is a construction-to-permanent loan? A construction-to-permanent loan (also called a build-to-permanent loan or one-time close construction loan) finances both the construction of your home and your long-term mortgage in a single loan. Instead of taking out a short-term construction loan and then refinancing later, your loan automatically converts to a permanent mortgage once construction is complete.
- Do I need two loans to build a house? No. With a construction-to-permanent loan, you only need one loan and one closing. This eliminates the need for a second loan, additional paperwork, and extra closing costs after your home is finished.
- Can I lock in my mortgage rate before construction begins? Yes. One of the biggest benefits of a construction-to-permanent loan is the ability to lock in your interest rate before construction starts. This provides peace of mind and helps protect you from potential rate increases during the building process.
- How does a one-time close construction loan work? Here’s how it works at First Kentucky: You apply for one loan that covers both construction and your permanent mortgage. You close once. During construction, funds are released in stages as work is completed. When construction is finished, the loan automatically converts into your long-term mortgage—no refinancing required.
- What are the benefits of a construction-to-permanent loan? This loan offers several advantages: One application and one closing. Fewer fees and lower overall costs. Less paperwork. Rate lock before construction begins. No need to refinance later. It’s a convenient and cost-effective way to finance a new home build.
- How much down payment is required for a construction loan? Down payment requirements vary based on credit, loan program, and project details. Contact First Kentucky Bank for specific requirements and personalized options.
- Who pays interest during construction? During the construction phase, borrowers typically pay interest only on the funds that have been disbursed, not the full loan amount. This can help keep payments lower while your home is being built.
- Can I use my own builder? Yes. Lenders typically require that builders be licensed, insured, and approved before the loan is finalized. Our team at First Kentucky Bank can help review your builder and ensure everything is in place before construction begins.
- What types of homes can be financed with a construction loan? Construction-to-permanent loans can be used for: Primary residences. Custom-built homes. New single-family homes. Program eligibility may vary, so we recommend speaking with our lending team about your specific project.
- How long does the construction phase last? Construction periods typically range from 6 to 12 months, depending on the size and complexity of the project. Your loan will convert to a permanent mortgage once construction is completed and approved.
- Why choose a local bank for a construction loan? Working with a local community bank means you get personalized service, local market knowledge, and a lender who understands builders and housing trends in western and central Kentucky. At First Kentucky Bank, we guide you through every step of the process—from application to move-in.
- How do I apply for a construction loan with First Kentucky Bank? Getting started is easy. Inquire online, stop by one of our locations, or contact our lending team directly. We’ll walk you through your options and help you start building with confidence.
Loan rates and terms may vary. All loans are subject to credit approval.
Have additional questions?
Give us a call at 1.866.839.6271. We are here to help!
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