Construction loans provide short-term financing for building or major renovations. They use staged draws, typically require higher down payments and documentation, and often convert to permanent mortgages with a one-time close option.
Construction-to-perm loans combine short-term construction financing with a permanent mortgage. They use draw schedules, interest-only payments during building, and can reference benchmarks like SOFR or the published prime rate. Key choices include single-close vs two-close and when to lock the permanent rate.
A concise guide to where Pennsylvanians find mortgage rates, the common loan types (fixed, HELOC, construction, interest-only ARMs), and how to compare offers. Learn what to check beyond the headline rate.