Construction-To-Permanent* Financing

Want to build your dream home and enjoy peace of mind during the process? Our Construction-To-Permanent Financing may be the best option for you.

  • With only one application, one closing and one loan, you save money.
  • Save money by paying closing costs only once, not twice.
  • Rate protection available at time of application for permanent phase.
  • Fixed rate option for construction phase with a draw period up to 15 months.
  • Draw request and inspections that meet both the builders and your needs.
  • Make interest-only payments on funds that have been disbursed during your construction period.

Your New Construction Step-by-step:

Basic steps to financing the construction of a new home:

  • Ask us to help you determine how much home you can afford.
  • Select your builder, finalize your plans and write your offer to purchase.
  • Apply for and closing your construction to perm loan with Piedmont Federal Bank.
  • At closing, Piedmont Federal Bank will add any unpaid balance owed on the lot to your loan.
  • We will set up your line of credit that holds the funds needed based on the contract with your builder.
  • As your home is built, you/your builder can request up to six draws for payment. Each draw covers only the work completed and materials installed to date based on that draw request.

The Draw Request Process:

We work directly with your builder to draw the funds specified for the work completed.

The bank employs a local company to inspect the construction site to verify that work being requested for payment has been completed.

For the final draw, a copy of the Certificate of Occupancy and a final inspection must be provided. The appraiser for the bank also makes a final inspection and certifies that your home has been completed per the plans and specifications you signed at the time of your application.

The bank will convert your existing line of credit to a permanent loan, set up an escrow account and modify the terms to the loan if necessary.

You are now ready to move in to your new home.


We have enhanced mortgage product offerings to provide you with a comprehensive range of solutions, ensuring a customized approach to meet your specific lending needs. More reasons »

*Subject to credit approval.


It’s as easy as 1-2-3.

Apply for a loan with Piedmont Federal in as little as 20 minutes using your smartphone, tablet or computer.

Start or finish your online
application today.


Featured Mortgage Rates:

By clicking the Secured Site link you will leave Piedmont Federal’s website and be subject to Network Solutions’ privacy policy.