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[quote=Anonymous]Yes, we have a construction to permanent loan, which has a previous poster mentioned, means a single closing.   The lender (in our case, Sandy Spring), reviewed our construction plans and then conducted an appraisal, and that's how the amount of the loan was decided.  Like any other mortgage, the bank is not financing the full cost of construction. Maybe other posters could jump in with their experiences, because the final formula for doing this was not disclosed to us. But its pretty much in line with having the equivalent of a 20% down payment.

Other terms:  we pay interest only (monthly once we started to draw down the loan for construction purposes.  That was only AFTER we had put up our cash for the 20% (ish) of the construction costs.   Rate secured for the loan is 3.25% (a different poster called it--we got the loan back in 2020 when interest rates were low.  Then we ran into a TON of COVID related delays--I will share the saga, its a doozy).  The bank let us hang onto that loan (and that rate), for dear life--by paying a  maintenance fee.  When a bank does a construction to perm loan, you're supposed to be completely done one year or so after getting the loan.  We'll be a whole two years and change past the targeted one year completion date.  So we've paid out over 10K in fees to maintain.  Its just one example of those unexpected costs to build into the project.

So to recap:
Cost of Land: 82K (self financed)
Site Prep & Financing costs: 163,000 (self financed)
Construction costs:1,150,000 (80% bank financed, 20% owner financed--estimate, as we're not done yet)
Total cost:  1,395,000

I'm sure there are other ways to do this--this is just one path.

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