We are still having significant software hurdles for construction loans. We would like to get some input from those who do one loan for construction to permanent financing and from those that have to set up two loans. Yes, I know these are broad questions, but consumer loans are new to us and we are trying to learn.
1. How do you set up a construction to perm with one loan? We would like to do a 30 year note with the first year being a fixed rate, interest only on the portion advanced. Once the construction portion is complete, we would like to convert the loan to fixed rate p&i. Is there anything that prohibits this? Anything to be mindful of?
2. When you do two separate loans, do you send all required disclosures as if you are for sure doing the permanent phase? What about the approval letters? Would the permanent just have conditions for approval? Would you get two applications.
Thank you so much in advance for any advice. It's nice to hear from the people who are actually doing these loans.