See if this helps:
A construction to permanent loan is the type of loan that's tougher to qualify for becuase you the consumer are likely to already own your land that you want to contract a private builder to construct for you upon your parcel of land. Now this assumes you already own your piece of land (hopefully you don't go looking for a loan for that too because you are likely to need 20-50% down depending upon which bank is lending) and have deposited or paid enough money to a construction company in order to pay them to build your house because most traditional mortgage loans aren't secured/colaterallized/funded until the certificate of occupancy is issued which is when everything in the home construction process is complete and then a bank will conduct a closing where a consumer's permanent loan will fund. A construction loan is often a smaller percentage of the final permanent loan, but enough to get the builder started once combined with your texas-sized cash deposit/down payment with them.
New Construction loans in Planned Unit Developments are less restrictive since a large developer merely buys a large parcel of acreage and has it subdivide lot by lot as they sell a new home design plan to you. These deals can be custom but not as difficult as the construction to perm becuase if you don't qualify or fail to close on your home the builder / developer sells the the next guy that comes along...(these new home construction loans can be your conventional or govt. loan programs with anywhere from $0-5% to 20% down payment)
I think the difference between the two highlighted concepts is where your off track...
__________________________________________________
Licensed NC Mortgage Loan Originator
