Construction-to-Permanent Loan Wisconsin – Build and Finance Your Dream Home in 2025
Construction-to-permanent loan Wisconsin options give you a smart, single-close way to build your dream home with long-term financing already locked in. These loans - offered through Fannie Mae and Freddie Mac - combine the flexibility of a construction loan with the stability of a permanent conventional mortgage.
If you're building in Wisconsin, this program can simplify the process, cut costs, and help you lock your interest rate before your home is even complete.
What Is a Construction-to-Permanent Loan?
A construction-to-permanent (CTP) loan finances both the construction and the permanent mortgage in one closing. That means you only sign once, pay one set of closing costs, and transition automatically from a construction loan to a long-term fixed-rate mortgage once the home is finished.
It's perfect for borrowers who want to:
- Build on their own lot or buy land to build on
- Avoid multiple loan closings
- Lock in their rate before construction begins
- Simplify financing through a single lender
Fannie Mae and Freddie Mac each offer programs that make this process easy, even for primary, second homes, or vacation properties.
How Conventional CTP Loans Work
Here's how the Conventional Construction-to-Permanent Loan process typically works:
- Pre-Approval: Get qualified based on income, assets, and credit - just like a standard mortgage.
- Appraisal: The property is appraised based on "as completed" value.
- Construction Phase: Funds are drawn in stages (known as "draws") to pay your builder.
- Completion: Once construction is finished and the certificate of occupancy is issued, your loan automatically converts to a standard 15-, 20-, or 30-year conventional mortgage.
Example: Real Savings for Wisconsin Homeowners
Let's say you build a $500,000 home in Waukesha County.
- Your initial CTP loan funds the build with a 7.25% temporary rate.
- Once construction is complete, it automatically converts to a 6.125% 30-year fixed.
Instead of doing two separate closings, you save on title fees, closing costs, and rate-lock headaches. Plus, your payments stay predictable for decades.
Key Benefits of a Conventional Construction-to-Permanent Loan
- One closing, one set of fees
- Lock your rate upfront (protects against market swings)
- Flexible down payment options - as low as 5% on primary homes
- Available for primary, second homes, or vacation properties
- Interest-only payments during construction
- No re-qualification at conversion
Documents You'll Need to Start
To get started on your construction-to-permanent loan, you'll need:
- Signed builder contract and plans/specifications
- Lot documentation (owned or to be purchased)
- Income documentation - pay stubs, W-2s, or tax returns
- Bank statements for reserves
- Photo ID
Once we have everything, my team can typically issue full approval within a week or so.
Why Wisconsin Buyers Choose Conventional CTP Loans
Fannie Mae and Freddie Mac loans are ideal for borrowers who have solid income and credit but want flexibility. Unlike FHA or VA, conventional CTP loans allow:
- Larger loan amounts (no FHA limits)
- Vacation or second home builds
- Reduced mortgage insurance requirements (or none with 20% down)
- Competitive rates for strong borrowers
If you're building anywhere in Southeastern Wisconsin - Milwaukee, Waukesha, Ozaukee, or Dane County - this is one of the cleanest, simplest ways to finance new construction in 2025.
Related Resources
- Internal Link: Refinance New Construction Mortgage in Wisconsin - Lock in a Better Rate in 2025
- External Link: Fannie Mae Construction-to-Permanent Financing Overview
Ready to Build and Finance the Smart Way?
Building your dream home should be exciting - not stressful. The construction-to-permanent loan Wisconsin borrowers use through Fannie Mae and Freddie Mac keeps everything simple, cost-effective, and predictable.
Let's review your plans and see how you can lock your rate and break ground faster in 2025.
Contact & CTA Block
Adam Zeman - NMLS #870441
Union Home Mortgage
Serving Milwaukee, Waukesha & all of Wisconsin
📞 414-975-2654
📧 azeman@uhm.com
🌐 www.mkemortgage.com
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