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Home Builders: How Our Construction to Permanent Financing Benefits You

12/1/2020
Well-manicured lawn in front of rural home

Home Builders and Contractors, we discuss benefits of our Construction-to-Permanent Financing and how we designed our draw schedule with you in mind.

*This article is featured in the Home Builders Association of South Carolina Newsletter.

Construction-to-Permanent Financing with AgSouth Mortgages

In our first article we discussed 3 Reasons Why Home Builders Love Working with AgSouth. We told you we offer two products for home construction, each having their own unique benefits due to our ability to finance small and large acreage at long-term fixed rates.

Benefits of Construction to Permanent Financing

In this article, we are going to discuss the benefits of our Construction-to-Permanent (C2P) Financing for both you and your clients.

Clear Expectations

For more than a century, AgSouth has been financing home purchases and construction. We understand the process, so we can help your work go smoother and more efficiently, keeping your clients and your workers happy. Our expertise and experience in explaining the workflow and procedures to your clients will enable them to know what to expect and understand how making changes or delaying decisions can affect the timeline of the overall build.

Draw Schedule

In order to be more flexible, we’ve created a percentage complete draw schedule; giving you a 4% draw after closing for permits and startup costs, plus eight inspected draws where you get to request the draw whenever you need, and get paid for whatever percentage of work is completed at the time of the appraiser’s inspection. Our team structure also allows us to provide quick draw turnaround times, getting you money to do your job faster.

One Closing

Our C2P loan finances the land, construction and final long-term loan with just one closing, saving your clients from having to pay multiple sets of closing fees. A lot of times, we see clients putting this extra cash back in to the build to, say, give them the kitchen or patio they really wanted.

Rate Lock During Construction

Your clients can lock in the interest rate prior to closing, so they don’t have to worry about rising interest rates during construction. If rates are lower when the house is complete, they can modify to a lower rate at no additional cost.

Part 3 will cover our C2P Contractors and Builders package, giving you everything you need to get started building your clients dream home with AgSouth Mortgages.

AgSouth Locations

We serve 34 counties in South Carolina and 59 counties in Georgia. If you have questions about our products and how they benefit you and your clients, our Loan Officers are happy to answer any questions you might have. To speak with a Loan Officer near you, please visit our locations page.

Map of South Carolina and Georgia