Pride Month in the United States begins each June to mark the June 28, 1969, uprising in response to a police raid of the beloved New York City gay bar Stonewall. The outrage sparked a new chapter in the LGBTQ+ movement in which activists could organize openly.
Historically, the subject of queer history beyond Stonewall has not been widely taught in schools. Out of the 50 U.S. states, only seven require public schools to teach an LGBTQ+ inclusive curriculum, the latest being Washington State as of March 2024. And for the past couple of years, novels with LGBTQ+ material in school libraries and public libraries have been the target of unprecedented book ban attempts.
TIME asked experts on queer history nationwide to talk about a milestone moment in modern queer history that is often overlooked but essential to learning a complete history of the queer liberation movement.
“It’s important to remember that Stonewall is only one event in a long story of LGBTQ+ resistance in the face of oppression,” says Wendy L. Rouse, author of Public Faces, Secret Lives: A Queer History of the Women’s Suffrage Movement.
From radical displays of affection to conventions that provided a safe space, the moments detailed below highlight lesser-known examples of queer resistance.
A construction to permanent loan, also known as a one-time close loan, is a great option for financing the building of a new home. This type of loan provides funds for construction and then converts to a traditional permanent mortgage once construction is complete.
In this comprehensive guide, we will walk through the entire construction to permanent loan process so you can fully understand how these loans work
What is a Construction to Permanent Loan?
A construction to permanent loan combines a short-term construction loan with a long-term permanent mortgage into one loan. This avoids the need to get separate construction financing and permanent financing
Here’s how it works in two phases
1. Construction Phase
During construction, the lender disburses payments to the builder at certain milestones. These draws cover the costs of land, materials, labor, permits, and other construction expenses.
An inspector works with the lender to ensure the project stays on schedule and on budget. The construction phase typically lasts around 12 months but can vary.
2. Permanent Phase
Once construction is finished and the home is complete, the loan converts into a permanent mortgage. This is usually a 15 or 30-year fixed-rate mortgage. Then you begin making principal and interest payments just like a traditional mortgage.
The single-close process saves time and money compared to getting a construction loan and permanent loan separately. You only pay one set of closing costs and go through one closing.
Construction to Permanent Loan Requirements
Since these loans carry more risk for the lender, approval standards are stricter than a typical mortgage. Here are some common requirements:
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Down payment – Expect to put down around 20% of the home’s value
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Credit score – A minimum score of 680 is usually required
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DTI ratio – Your debt-to-income ratio should be 45% or lower
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Appraisal – The lender will order an appraisal to estimate the home’s completed value
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Construction plans – Detailed budgets, blueprints, schedules, permits, and other documentation must be submitted
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Licensed contractors – You’ll need to hire licensed professionals approved by the lender
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Builder’s risk insurance – This covers the home during the construction phase
Meeting these requirements shows the lender you are financially qualified and have a feasible construction plan. Government-backed construction loans like FHA, VA, and USDA loans have alternative requirements.
Pros and Cons of Construction to Permanent Loans
These unique loans offer advantages as well as downsides to weigh.
Pros
- Only one set of closing costs
- Draw funds as construction progresses
- Typically pay interest-only during construction
- Streamlined process with one loan
Cons
- Higher interest rates than permanent mortgages
- Larger down payments required
- More documentation and paperwork
- Cost overruns may require extra funds
As you can see, the pros of simplicity and convenience come with the trade-off of higher rates and costs. But for many homebuyers, it’s worth it to have an all-in-one construction financing option.
How to Apply for a Construction to Permanent Loan
Now let’s review the step-by-step process to apply and get approved:
1. Get pre-approved – Being pre-approved in advance will make your offer more attractive to home sellers. Shop and compare loan offers from multiple lenders.
2. Find a lot and builder – Once pre-approved, you can start seriously looking for a lot and builder. Research builders’ reputations thoroughly.
3. Submit plans and documents – Provide the lender with detailed budgets, blueprints, permits, licenses, and specs.
4. Complete loan application – You’ll go through the full mortgage application process including documenting income, assets, credit, etc.
**5. Loan underwriting ** – The lender will thoroughly underwrite and approve the loan based on your finances, plans, and other factors.
6. Closing and construction – At closing, you’ll sign the construction loan documents. Then construction will begin!
7. Draw requests – Your lender will disburse payments to the builder at certain milestones. Inspectors verify progress.
8. Conversion to permanent loan – After the home is finished, the loan converts to a permanent mortgage and you begin making regular principal and interest payments.
It takes coordiation and diligence from start to finish, but the reward is a brand new home tailored to your needs.
Tips for a Smooth Process
Follow these tips to help your construction loan go as smoothly as possible:
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Find an experienced lender who specializes in construction loans. Their expertise is invaluable.
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Research builders thoroughly and read reviews. A reputable builder is crucial.
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Plan for contingencies in your budget for potential overages. New construction often has unexpected costs.
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Get qualified for a pre-approval amount high enough to cover the home’s final estimated value. This gives you flexibility.
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Provide the lender will complete documentation up front to avoid delays. Disorganized applicants can slow down the process.
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Communicate regularly with your lender and builder. Be responsive to their requests to keep things moving forward.
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Be prepared to make interest-only payments during the construction phase before the permanent financing kicks in.
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If your finances change, notify your lender so they can re-evaluate your loan if needed.
Following these tips will lead to a smooth journey resulting in your beautiful new custom home!
Alternatives to Construction to Permanent Loans
If the construction to permanent loan option isn’t right for you, here are a few alternatives to consider:
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FHA construction loan – Requires just 3.5% down with flexible credit and debt requirements.
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VA construction loan – For eligible military members. No down payment is required.
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Renovation loan – FHA 203(k) loans allow you to finance purchasing and renovating an existing home.
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Home equity loan – If you have enough home equity, you may be able to tap it to finance construction.
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Cash-out refinance – Refinancing your current home could provide funds to build a new home.
Each option has its own pros, cons, rates, and criteria. Talk to a loan officer to discuss all possible construction financing alternatives for your situation.
Construction Loan Rates and Fees
Expect to pay a higher interest rate compared to a typical permanent mortgage. Construction loan rates are variable and indexed to the Prime Rate. The rate you pay during the construction phase is usually different (higher) than the permanent mortgage rate after construction.
Typical fees include:
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Origination fees – Up to 2% of the loan amount
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Draw fees – $50+ per draw request during construction
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Inspection fees – $200+ per inspection
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Other closing costs – Appraisal, credit report, title fees, etc.
The convenience of wrapping construction and permanent financing into one loan comes with higher costs for interest and fees. But you’ll still pay less than getting completely separate construction financing and permanent financing.
Finding the Best Construction Loan Lenders
Choosing the right lender is crucial for a smooth process. Here’s how to find the best lenders for construction loans:
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Local banks – Many community banks and credit unions offer construction financing options. A local lender can provide personalized guidance.
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Mortgage brokers – Brokers have access to construction loan programs from multiple lenders. They can help you compare options.
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Online lenders – Several online lenders provide construction loans with easy rate comparisons. But they may lack local market expertise.
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Credit unions – Some credit unions offer construction loans only for their members. If you belong to one, inquire about their construction lending.
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Specialized lenders – A handful of lenders focus specifically on construction financing. They have the most experience with the unique process.
Make sure to get multiple loan estimates and compare costs and lender reviews. Go with a lender you trust to guide you through the complex construction loan process.
How Much Can I Borrow for a Construction Loan?
Loan amounts are based on the home’s estimated completed value. Other factors like your income, debts, and credit score impact the amount you can borrow as well.
Typical loan-to-value (LTV) ratios for construction loans fall between 70-80% of the home’s future value. So if you wanted to build a $400,000 home, your loan amount may be around $280,000-$320,000. Then you would need $80,000-$120,000 for a 20-25% down payment.
Of course, each lender will have their own underwriting requirements that determine the maximum loan amount. Providing a larger down payment as well as strong credit and finances will boost your chances for approval and potentially allow you to borrow more.
Construction Loan Interest Rates
Since construction loans carry more risk, their interest rates are higher than rates for typical permanent home loans.
The construction phase rates are variable and pegge
The power of the 1970 kiss-in
At a time when bartenders would call the police if they saw same-sex kissing, hugging, and dancing, Gay Liberation Front (GLF) activists decided to organize a “kiss-in” of sorts. They brought a bunch of gay men to a gay bar called The Farm in Los Angeles and encouraged them to kiss and hug until the music stopped and the police were called. Gay men stood and linked arms, and the police didn’t arrest any of them. The bar no longer policed gay men for hugging and kissing, prompting the GLF to put up signs that said “This Bar is Liberated.”
The kiss-in is one of many acts of queer resistance that often gets overlooked. “The 1970 demonstration at the Farm symbolizes the enduring power of queer love as an act of resistance,” says Rouse.
A historic, secret trans convention in 1962
Before RuPaul’s Drag Race, one of the hottest drag shows in history took place Halloween weekend 1962 at Casa Susanna, a retreat for transgender women and cross-dressing men in the Catskills. During this trans convention, activist Virginia Prince formed a national sorority of cross-dressers called F.P.E., Full Personality Expression. There was a lot of singing and erotic dancing in the barn, but also some serious, pioneering discussions in which psychiatrists from the Kinsey Institute spoke about the psychology of cross-dressing in a safe space.
Casa Susanna “was a countryside house with a vast land all around. That was very important because people were totally protected,” says Sébastien Lifshitz, director of Casa Susanna, streaming on PBS June 4. Beyond the Halloween convention, people who liked to cross-dress often visited the house on weekends and holidays, and were welcome to take all of their meals there, or help with the gardening.
How To Build a House From Scratch With No Money | Construction To Permanent Loan
FAQ
What is the primary disadvantage of a construction permanent loan?
How does a construction perm loan work?
What is a permanent loan taken out after the construction loan?
What is the minimum FICO score for a construction loan?
What is a construction to permanent loan?
Construction to permanent loans eliminate the need for two different loans. Instead, you get a single loan to purchase the land and build the home that will convert to a permanent mortgage when construction is complete. Loan terms usually range from 15 to 30 years and have fixed interest rates, similar to other types of mortgage loans.
How do I get a construction to permanent loan?
Project approval: The lender needs to approve your budgets, schedule, blueprints and more. Architect and contractor approval: You’ll need to hire licensed, professional builders and submit copies of their licenses, certificates and/or resumes to your lender. Construction-to-permanent loans have benefits as well as drawbacks.
What is a construction-to-permanent loan?
A construction-to-permanent loan is one form of construction financing borrowers use to build a home. It can help with obtaining the land, materials, permits and more. Many types of lenders offer construction-to-permanent loans, but you’ll most often find them at a bank or with a lender that specializes in construction financing.
Do construction loans convert into a permanent mortgage?
That said, some loans automatically convert into a permanent mortgage once construction is complete. Unlike traditional mortgages, construction loans aren’t secured by a completed house. For that reason, the application and approval processes for a construction loan also are more complex than for a mortgage.
How does a construction loan work?
This may take the form of an in-person inspection of the work. Once construction is complete, you’ll shift to making principal payments. This only happens once your loan moves from the construction to permanent phase. As with other mortgage loans, you’ll need to make sure the home is properly insured.
How does a construction-to-permanent (C/P) loan work?
The application process for a construction-to-permanent (C/P) loan and traditional mortgage financing is very similar. The lender will review your income, assets, debts, and credit history as well as order an appraisal.