Construction to Permanent Loans for Building Your Home

One-Time Close Financing for Construction and Permanent Mortgage

Building a home comes with unique financing needs. AgSouth Mortgages, a home loan division of AgSouth Farm Credit, offers home construction loans designed to support rural home builds from the ground up. 

What is a Construction to Permanent Home Loan?

A construction-to-permanent (C2P) loan allows you to finance your land purchase, construction, and permanent mortgage with one loan. This approach simplifies the financing process and can reduce closing costs compared to using separate loans.

What Can A Construction to Permanent Loan Be Used For?

  • Purchasing land and building a home in one process
  • Building on land you already own
  • Constructing barndominiums or modular homes
  • Designing and building custom homes in rural areas
  • Creating a secondary or recreational residence
  • Building a primary home as part of a working farm or agricultural operation

 

Finance your home in the country with AgSouth construction loans

Construction to Permanent Loan Rates, Down Payment Options, and Terms

AgSouth offers flexible construction financing based on your project and eligibility:

  • As low as 5% down payment
  • Fixed interest rate during construction
  • Lock in permanent interest rate when home is complete
  • Up to 12 months of construction time
  • Permanent mortgages terms up to 30 year mortgage 

Your lender will help structure your loan based on your timeline, build plan, and long-term goals.

Other Construction Programs Available

If your construction project isn't eligible under our AgSouth Mortgages construction to permanent loan program, you may be eligible to finance under a Rural Home Construction Loan with AgSouth Farm Credit. This program offers up to 85% financing and more flexibility for custom homes or for full-time farmers.

AgSouth helps people make their dream of living in the country come true.

Why Choose AgSouth for Construction to Permanent?

  • Local construction lending expertise
  • Flexible financing for rural home construction with no limits on acreage
  • Excellent builder relationships, and streamlined draw processes using BUILT mobile app.

 

How It Works:

  1. Get pre-qualified by speaking with one of our lenders
  2. When you have a builder contract, you will complete your application
  3. During construction you'll make interest payments only
  4. After the home is complete, you will fill out modification documents to convert your loan to permanent financing

Construction to Perm Loan FAQs

Can I finance land and home construction at the same time?

Yes. Many borrowers use construction-to-permanent loans to finance land, construction, and the permanent mortgage together, depending on eligibility and project details. Some borrowers decide to buy land first, and then build 12-18 months later using AgSouth Mortgages. 

Can I get a construction to permanent loan if I am self-employed?

Yes. Additional financials will be needed for self-employed borrowers. This includes copies of the last two years’ personal tax returns.

What can I include in my construction to perm home loan?

Anything the builder says they will build. Many of AgSouth's customers include things like wells, septics, pools, barns and shops. 

Does my builder have to be approved by AgSouth?

AgSouth does not require a builder to be “approved” but we do have a contract approval process, and we require them to be licensed in the state in which they are building. We will request documentation from the builder and review their builder’s license and confirm that they are in good standing in their state.

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Talk with a Construction Lender

About AgSouth Farm Credit

AgSouth Mortgages is the home loan division of AgSouth Farm Credit. AgSouth Farm Credit is a member-owned agricultural cooperative serving Georgia, North Carolina and South Carolina. We provide land, farm, home, and agribusiness financing.

Disclaimer - Most loans through AgSouth Mortgages do not qualify for patronage. Please ask your lender if you qualify.