Nevada Construction-to-Permanent Loan (CTP) — Complete 2026 Guide
Program figures verified July 2026 — details change; confirm your scenario with us.
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%.
Can I include lot purchase in CTP?
Yes — many CTP programs include lot purchase. Saves separate land loan.
How long can construction take?
12-18 months typical. Some programs allow 24 months. Time extensions sometimes possible.
What if construction goes over budget?
Reserve fund required typically (10-20% above contract). If goes beyond reserve: borrower funds difference.
Can I be my own builder?
Owner-builder CTP available but complex; requires specific lender programs. Most CTP for licensed contractor projects.
How are disbursements made?
Disbursements to builder at construction milestones (foundation, framing, etc.). Inspector verifies each.
What if construction delays?
Lock period extension may be required. Some lenders extend automatically; others may require new lock at current rate.
Can I refinance CTP later?
Yes — standard refinance applies after conversion to permanent.
What's the typical CTP interest rate?
Construction phase: prime + 0.5-1.5% (variable). Permanent phase: standard mortgage rate (often locked at application).
Mike's CTP experience?
Mike originates Construction-to-Permanent loans for NV custom builds regularly. Coordinates with builders + lenders.
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.