Nevada Construction-to-Permanent Loan (CTP) — Complete 2026 Guide
The 60-second answer
Construction-to-Permanent (CTP) loan finances both your custom build construction AND converts to your permanent mortgage at completion — all in a single loan with one closing:
- Single close: one application, one closing, one set of fees
- Lot + construction financed: if you don't already own the lot
- 12-18 months construction period typical
- Interest-only during construction (you pay interest on disbursed amounts)
- Converts to 15/30 year mortgage at completion (no second closing)
- 20-25% down typical
- Best for: custom builds, semi-custom, Sears/Sierra Custom, owner-builder projects
For NV buyers wanting custom construction (Hidden Valley custom, NV custom estates, Reno custom estates, Carson Valley custom builds): CTP is the cleanest financing path.
What is Construction-to-Permanent (CTP)?
Concept
A single loan that: 1. Finances purchase of lot (if applicable) 2. Funds construction phase (12-18 months typical) 3. Converts to permanent mortgage at completion
vs Traditional construction + permanent
- Traditional: separate construction loan + separate permanent mortgage = 2 closings + 2 sets of fees
- CTP: single loan, single closing, single set of fees
- CTP advantage: simpler, less expensive, less paperwork
How CTP differs from builder-financed
- Builder-financed: builder pays for construction; buyer pays at close
- CTP: buyer finances entire process; pays during construction
- CTP is for owner-builder or custom-builder projects (vs Lennar/KB/Pulte production)
CTP loan structure
Phase 1: Lot + Construction
- Lot purchase funded (if not already owned)
- Construction loan portion at interest-only rate
- Disbursements during construction at milestones
- Owner-builder OR contractor-built
Phase 2: Permanent
- At construction completion, loan converts
- 15 or 30 year amortization
- Standard mortgage payments begin
- No separate refinance needed
Loan terms typical
- Down payment: 20-25% of total project cost
- Construction period: 12-18 months
- Construction interest: prime + 0.5-1.5%
- Permanent rate: locked at original application typically
- Single closing: all fees paid upfront
Disbursement schedule
- 10-20% at foundation
- 30-40% at framing
- 50-70% at completion of major systems
- 80-90% at occupancy
- 100% at construction completion
When CTP makes sense
Case 1: Custom build NV estates
- Hidden Valley custom estates Reno
- Las Vegas premium custom (MacDonald Highlands edges, etc.)
- Reno custom estates
- Carson Valley custom builds
Case 2: Semi-custom production
- Toll Brothers semi-custom
- Other premium semi-custom
Case 3: Owner-builder projects
- Owner-managed construction (less common; complex)
- Some NV custom builders work with owner-builder structures
Case 4: Larger remodel + addition
- Sometimes CTP-style loan for substantial addition + remodel
When CTP doesn't make sense
Case 1: Production home builder (Lennar, KB, Pulte, DR Horton)
- These builders finance construction in advance
- Buyer pays at close (standard mortgage)
- CTP not needed
Case 2: Small renovation
- HELOC or cash-out refinance more appropriate
- CTP overkill for minor projects
Case 3: Existing home purchase
- Standard mortgage applies
- CTP only for new construction
NV CTP market
Lenders offering CTP in NV
- Cornerstone First Mortgage (Mike Certo) — for many projects
- Bank of America — limited CTP
- Wells Fargo — limited CTP
- Local NV banks — some offer CTP for established customers
- Construction-specialized lenders — niche programs
NV custom builders
- Mediterra Custom — Las Vegas custom
- Sierra Custom Homes — Reno custom
- Various custom builders statewide
NV lot markets
- Lake Las Vegas custom lots — $185K-$1.5M+
- MacDonald Highlands lots — $385K-$2M+
- The Ridges Summerlin lots — $385K-$1.5M+
- Reno custom lots (Hidden Valley, etc.) — $185K-$685K
- Carson Valley custom lots — $85K-$385K
- Mesquite custom lots — $85K-$385K
Examples: NV CTP scenarios
Scenario 1: Hidden Valley Reno custom build
- 52-year-old couple
- Hidden Valley lot $285K (already owned)
- Custom build budget $585K
- Total project: $870K
- CTP loan: 25% down = $217K (lot value counts toward equity)
- 12-month construction
- Converts to 30-year mortgage at $653K
- Mike coordinates lender + builder
Scenario 2: MacDonald Highlands Las Vegas premium
- 45-year-old executive
- MacDonald Highlands lot $785K
- Custom build $1.8M
- Total project: $2.585M
- CTP loan: 25% down = $646K (lot + cash)
- 18-month construction
- Converts to jumbo mortgage at $1.94M
- High-net-worth borrower; clean qualification
Scenario 3: Carson Valley custom build
- 38-year-old + spouse, Carson Valley lot $145K
- Custom build $485K
- Total: $630K
- CTP loan: 20% down = $126K (lot + cash)
- 12-month construction
- Converts to 30-year mortgage at $504K
Scenario 4: Lake Las Vegas custom condo
- 60-year-old retiree, Lake LV lot/space $385K
- Custom condo build $585K
- Total: $970K
- CTP loan: 25% down = $243K
- 15-month construction
- Converts to 30-year mortgage at $727K
Scenario 5: Semi-custom Inspirada upgrade
- 45-year-old, Inspirada semi-custom $725K (builder-managed)
- Reality: Builder-financed (not CTP)
- Standard mortgage at close
- CTP not applicable for this scenario
CTP application process
Step 1: Pre-qualification
- Confirm buyer financial strength
- Review construction project (plans, budget, builder)
- Mike issues CTP pre-approval
Step 2: Lot identification + appraisal
- If lot owned: appraisal for combined valuation
- If buying lot: include lot purchase in CTP
Step 3: Builder selection + contract
- Choose custom builder (or owner-builder)
- Sign contract with specifications + timeline
- Submit construction budget
Step 4: Application + approval (3-6 weeks)
- Full CTP application
- Builder + project review
- Approval issued
Step 5: Closing (1 day)
- Single closing for CTP loan
- Construction funds available
- Permanent mortgage terms locked
Step 6: Construction phase (12-18 months)
- Disbursements at milestones
- Inspector verifies completion at each stage
- Borrower pays interest on disbursed amounts
Step 7: Conversion (1 day)
- At construction completion
- Final inspection
- Loan converts to permanent
- Borrower begins regular mortgage payments
Total timeline: 14-22 months typical
CTP cost analysis
Single-close savings vs traditional
- One closing fee (~$3K-$8K) vs two separate
- Single application + underwriting
- Save $5K-$15K vs two-loan path
vs builder-financed
- Builder-financed = builder loans money during construction
- CTP = buyer pays interest during construction
- Builder-financed may have less buyer flexibility
- CTP gives buyer more control
Interest expense during construction
- Interest-only payments during construction
- Monthly cost: depends on disbursed amount
- Example: $400K disbursed at 8% = $2,667/mo interest
Conversion fees
- Typically no conversion fee (single close)
- Some lenders charge "construction completion fee" $500-$1,500
Frequently asked questions
How much down for CTP?
20-25% of total project cost typical. Some lenders require 25-30%. {#faq-down-payment}
Can I include lot purchase in CTP?
Yes — many CTP programs include lot purchase. Saves separate land loan. {#faq-include-lot}
How long can construction take?
12-18 months typical. Some programs allow 24 months. Time extensions sometimes possible. {#faq-construction-time}
What if construction goes over budget?
Reserve fund required typically (10-20% above contract). If goes beyond reserve: borrower funds difference. {#faq-over-budget}
Can I be my own builder?
Owner-builder CTP available but complex; requires specific lender programs. Most CTP for licensed contractor projects. {#faq-owner-builder}
How are disbursements made?
Disbursements to builder at construction milestones (foundation, framing, etc.). Inspector verifies each. {#faq-disbursements}
What if construction delays?
Lock period extension may be required. Some lenders extend automatically; others may require new lock at current rate. {#faq-delays}
Can I refinance CTP later?
Yes — standard refinance applies after conversion to permanent. {#faq-refinance-after}
What's the typical CTP interest rate?
Construction phase: prime + 0.5-1.5% (variable). Permanent phase: standard mortgage rate (often locked at application). {#faq-rates}
Mike's CTP experience?
Mike originates Construction-to-Permanent loans for NV custom builds regularly. Coordinates with builders + lenders. {#faq-mike-experience}
Talk to Mike about your NV CTP construction loan
Free 30-minute consultation. Pre-call: project type (custom, semi-custom, owner-builder), lot status, budget, target timeline.
(480) 296-6513 · Mike Certo, NMLS #260555 · Cornerstone First Mortgage NMLS #173855
Sources
Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content, not a loan commitment. Loans subject to qualification + project review.