Contributing Author & Editorial Review
This article was authored and professionally reviewed to provide accurate, actionable financial insights.
GHC Funding
Contributing Author
Alyssa writes about real estate investing, debt-free strategies, and emerging trends in small business finance with a focus on practical insights.
Samantha Reyes
Senior Content Editor
Samantha specializes in editorial strategy, compliance review, and refining complex finance topics into accessible, reader-friendly guidance.
Construction & Renovation Highlights
- Financing for ground-up builds and major rehab projects.
- Works for SFR, small multifamily, and select mixed-use/commercial.
- Up to 85–90% of project costs and 70–75% of completed value (case-by-case).
- Interest-only during the build phase for improved cash flow.
How to Get a Construction to Permanent Loan in Connecticut
When Sarah, a small business owner in New Haven, decided to expand her bakery, she faced a dilemma. She needed financing to cover construction costs, but didn’t want the hassle of refinancing after the project was completed. That’s when she discovered the power of a construction to permanent loan, which provided the perfect solution to her problem.
- How to Get a Construction to Permanent Loan in Connecticut
- Understanding Construction to Permanent Loans
- Who Needs a Construction to Permanent Loan?
- Credit Score and Approval Timeline
- Common Mistakes to Avoid
- Case Study: A Success Story in Stamford
- FAQs About Construction to Permanent Loans
- Contact GHC Funding Today
Understanding Construction to Permanent Loans
A construction to permanent loan is a unique financing option that combines a construction loan with a mortgage. It allows you to finance the construction of a property and then converts into a permanent mortgage once the construction is complete. This type of loan is ideal for business owners like Sarah who are looking to build or renovate commercial spaces in Connecticut.
Why is this beneficial? It saves you the hassle and cost of refinancing after construction is done, locking in terms from the start. This is particularly advantageous in Connecticut’s dynamic real estate market.
Need capital? GHC Funding offers flexible funding solutions to support your business growth or real estate projects. Discover fast, reliable financing options today!
⚡ Key Flexible Funding Options:
GHC Funding everages financing types that prioritize asset value and cash flow over lengthy financial history checks:
DSCR Rental Loan
- No tax returns required
- Qualify using rental income (DSCR-based)
- Fast closings ~3–4 weeks
SBA 7(a) Loan
- Lower down payments vs banks
- Long amortization improves cash flow
- Good if your business occupies 51%+
Bridge Loan
- Close quickly — move on opportunities
- Flexible underwriting
- Great for value-add or transitional assets
SBA 504 Loan
- Low fixed rates through CDC portion
- Great for construction, expansion, fixed assets
- Often lower down payment than bank loans
🌐 Learn More
For details on GHC Funding's specific products and to start an application, please visit our homepage:
- Single loan closing saves time and money
- Interest rates are secured upfront
Who Needs a Construction to Permanent Loan?
Business owners planning to build or extensively renovate their commercial properties in cities like Hartford, Bridgeport, and Stamford can greatly benefit from this loan. It’s particularly useful for those looking to avoid fluctuating interest rates and want a seamless transition from construction to occupancy.
Credit Score and Approval Timeline
One crucial factor is your credit score. In Connecticut, lenders typically require a minimum score of 680 to qualify. The approval process can take between 45 to 60 days, so it’s important to plan ahead.
Common Mistakes to Avoid
Many Connecticut business owners make avoidable mistakes when seeking construction to permanent loans. Here are some to watch out for:
- Underestimating project costs
- Failing to secure proper permits
- Not having a detailed construction plan
- Overlooking potential zoning issues
Case Study: A Success Story in Stamford
Consider John, who opened a new restaurant in Stamford. With a construction to permanent loan of $500,000, he was able to build a modern space tailored to his needs. The process took 50 days from application to approval, allowing him to open on schedule and within budget.
FAQs About Construction to Permanent Loans
Here are some common questions business owners in Connecticut often ask:
- What’s the difference between a construction loan and a construction to permanent loan?
- How does the interest rate work during construction?
- Can I make changes to the construction plan after the loan is approved?
- What happens if construction takes longer than expected?
- Are there prepayment penalties?
Get a Free Rate Today
Compare our top-rated commercial and investment property loan programs below.
- No income verification
- 30-year fixed | Interest-only available
- Great for rental properties + STR
- Fast approvals
- Working capital + business acquisition
- Up to $5M
- Low down payment
- Long-term financing
- Owner-occupied CRE
- Low fixed rates | 25-year terms
- Great for business expansion
- Refinance available
- Best for stabilized properties
- Competitive rates
- 12–25 year terms
- Lower fees than private lenders
Compare Loan Types
Find the Right Financing for Your Real Estate or Business Project
| Loan Type | Best For | Rates | Terms | Highlights | Apply |
|---|---|---|---|---|---|
| DSCR Loan | Rental properties (LTR & STR) | 5.99%+ | 30-year fixed, IO options | No income docs, fast approvals, great for investors | Check My Rate |
| Construction Loan | Ground-up, fix & build, major renovations | 8%–12% depending on scope | 12–24 months interest-only | Flexible draws, great for builders & developers | Get a Quote |
| SBA Loan | Business acquisition, working capital, CRE | Prime + spread | 10–25 years | Lowest down payments, long terms, best for business growth | See My Options |
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At GHC Funding, we specialize in helping Connecticut business owners navigate the complexities of construction to permanent loans. Contact us today to learn how we can assist you in securing the financing you need to grow your business.
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Get a No Obligation Quote Today.
Use these trusted resources to grow and manage your small business—then connect with GHC Funding
to explore financing options tailored to your needs.
GHC Funding helps entrepreneurs secure working capital, equipment financing, real estate loans,
and more—start your funding conversation today.
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