Build Your Dream Home with a Construction-to-Permanent Loan

Building a home shouldn’t mean juggling two loans, two closings, and two sets of paperwork. With a construction-to-permanent loan from NorthStar, you finance the land, the build, and your long-term mortgage all in a single loan—closed once, up front.

What Is a Construction-to-Permanent Loan?

A construction-to-permanent loan (sometimes called a “one-time close” or “C2P” loan) is a single loan that covers two phases of your home-building journey:

The construction phase, when funds are released in stages to your builder as the home is completed, and the permanent phase, when your loan automatically converts into a traditional, long-term mortgage once construction is finished. Because both phases are wrapped into one loan with one closing, you avoid the cost and hassle of refinancing into a separate mortgage after your home is built.

How It Works

One application, one closing. You qualify and close a single time, before construction begins—locking in your financing for the entire project.

Funds released in draws. As your builder hits key milestones (foundation, framing, finishing, and so on), funds are disbursed in stages, so you’re only financing the work that’s actually been completed.

Built-in conversion. When your home is complete and the certificate of occupancy is issued, your loan transitions seamlessly into permanent financing. There’s no second loan to apply for and no surprise refinance.

Why Borrowers Choose a Construction-to-Permanent Loan

Closing once means a single set of closing costs instead of paying twice. You also gain certainty: your financing is secured before the first nail goes in, so you’re not left hoping you’ll qualify for a mortgage after the build is done. The streamlined, milestone-based draw schedule keeps your project—and your budget—on track, and you have one point of contact at NorthStar guiding you from groundbreaking to move-in.

Is It the Right Fit for You?

A construction-to-permanent loan may be a strong option if you’re building a new primary residence from the ground up, purchasing a lot and constructing at the same time, or working with a licensed builder on a custom or semi-custom home. Our loan officers can walk you through whether this loan fits your timeline, budget, and goals.

Your Path from Blueprint to Front Door

1. Connect with a NorthStar loan officer to review your plans, budget, and builder.
2. Get pre-qualified and confirm the loan structure that fits your project.
3. Close once and begin construction with financing in place.
4. Draw funds in stages as your builder completes each milestone.
5. Move in as your loan converts to permanent financing—no second closing required.

Ready to Start Building?

Whether you’ve already chosen your lot and builder or you’re just exploring what’s possible, NorthStar is here to help you finance the home you’ve been picturing. Connect with a loan officer today to get started.

NorthStar Mortgage Advisors is a division of Canopy Mortgage, LLC. NMLS #1359687 (www.nmlsconsumeraccess.org). Georgia Residential Mortgage Licensee. Equal Housing Lender. This is not a commitment to lend. All loans are subject to credit approval, property appraisal, and program guidelines. Loan programs, terms, and availability are subject to change without notice. Construction-to-permanent financing requires an approved builder and is subject to additional underwriting requirements.