What is another term for a combined construction loan and mortgage?

A combined construction loan and mortgage is often referred to as a construction permanent loan. This type of financing is specifically designed for projects that involve both the construction phase and the long-term mortgage phase, allowing the borrower to secure funding for the construction of a home and then transition into a permanent mortgage without taking out separate loans for each phase.

This type of loan streamlines the borrowing process, as the borrower only needs to go through the application and closing processes once, simplifying both the management of payments and the organization of financing. Once construction is complete, the loan converts to a permanent mortgage, making it an efficient option for borrowers looking to build new homes.