Underwriting Single-Closing Construction-to-Permanent Mortgages
The lender must underwrite a single-closing construction-to-permanent loan based on the terms of the permanent financing. If the permanent financing terms are modified, and no longer reflect the terms on which the underwriting was based, the loan must be re-underwritten, subject to certain re-underwriting tolerances. The loan data at delivery must match the data in the final submission of the loan casefile to DU.
As described in the table below, re-underwriting tolerances may be applied if the interest rate or loan amount was modified. (All other modifications require re-underwriting.)
|Loan Term Modified||Re-underwriting Tolerances|
For additional information, see B5-3.1-02, Conversion of Construction-to-Permanent Financing: Single-Closing Transactions.