Permanent loan

A long-term loan taken out upon completion of a newbuilding

Permanent loans work together with construction loans.

Here is how it works: land developers who buy large pieces of land to build homes on will first take out a construction loan on the property, which covers the entire lot.
Then, when all the buildings are ready to sell, the lender offers each home buyer a permanent loan. Part or all of this money will go towards paying off the construction loan.

Permanent loans are also called take-out loans.