CLEVELAND -- National City Bank has begun to offer construction-permanent loans aimed at individuals and their general contractors.
The bank said the loans required only one closing because the construction loan and permanent mortgage are one and the same.
The loans are being offered at variable and fixed rates and at up to 90% financing on adjustable rates. During the construction phase, the customer pays interest only on the money drawn, not the entire loan amount.
Such piggyback loans have become an increasingly popular tool for lenders in seeking to corral more lending business for home purchases.
Many see relationships with builders as a key way to build this kind of business.