A construction-to-permanent loan is one that is used to finance the construction of a home; it is then converted to a traditional mortgage once construction on the home has been completed. The benefit of this type of loan is that the loan process is condensed: Instead of having to apply for and then close on both a construction loan and a traditional mortgage, resulting in two separate loan applications and two loan closings, the borrower only has to go through the process once. The application process happens before construction commences. Once the borrower is approved for the loan, specifically before construction begins, the details of both the construction loan and permanent mortgage are determined. Once the construction is complete, the loan is converted to a traditional mortgage, at which time the loan goes to closing.