Closing Time Frame on New Construction Loan

[Anonymous]

I'm a little confused on when you close for a new construction loan, specifically the construction to perm loan.  I know that you'll pay interest on the construction part of the loan (I'm assuming as soon as they start work), but do you close AFTER the construction is finished, or at the onset of construction?

[Anonymous]

You close before they even send it to permitting. I'm set to close on my construction to perm loan next week. My builder is semi custom and will not send it to permitting until we close. Once the COO (certificate of occupancy) has been issued then you just move in and the loan converts to a regular mortgage. Typically they are 31 year loans have the first year used for construction.