Homeownership education
Construction-to-Permanent Refinance Record Guide [2026]
Completion, title, draw, valuation, and permanent-loan review
A finished project, closed permit, final draw, lien-free title, certificate of occupancy, stabilized value, and permanent financing are separate milestones. Track each in writing.
Reconcile the Construction File Before Conversion
Review the construction note, conversion terms, budget, draw ledger, change orders, inspections, permits, contractor records, lien releases, insurance, appraisal, occupancy approval, and final cash requirements.
Written-Record Comparison
| Factor | Record to review | Risk to test |
|---|---|---|
| Completion | Inspections, permits, occupancy record | Work is incomplete or noncompliant |
| Budget and draws | Draw ledger and change orders | Overrun or unpaid party |
| Permanent terms | Conversion agreement or new note | Rate, payment, or qualification change |
Primary Sources
Frequently Asked Questions
Does construction completion automatically trigger permanent financing?
Not necessarily. The controlling agreement may require inspections, lien clearance, insurance, appraisal, occupancy approval, updated documents, or other conditions.
Can cost overruns be added to the permanent loan?
Do not assume so. The written budget, loan amount, change-order process, appraisal, and program rules determine how overruns are handled.
What records should be retained?
Keep contracts, permits, plans, draw requests, invoices, inspections, change orders, lien releases, insurance, appraisal, closing records, and the final note.