Thinking about building your own coastal home in Port St. Joe but not sure how to finance it from the first shovel to move‑in day? You are not alone. Many buyers want a simple way to fund the build and end up with one mortgage. In this guide, you will learn how construction‑to‑permanent financing works, what is unique about building here, and how to plan your timeline and budget with confidence. Let’s dive in.
Construction‑to‑perm basics
How the loan works
A construction‑to‑permanent loan is a single mortgage that funds your build in stages, then converts to a long‑term loan when the home is complete. During construction, the lender releases money to your builder in draws tied to milestones, and you typically pay interest only on funds advanced. After final inspection or a certificate of occupancy, the loan converts to a fixed term, often 15 or 30 years. For a clear overview of how single‑close construction loans work, see this consumer guide.
Programs and down payments
Programs vary. FHA’s One‑Time Close is designed for a single closing and can allow low down payments for eligible borrowers within program limits and lender rules. You may also see VA and conventional options, each with its own down payment and underwriting standards. Learn more about the FHA option at FHA’s One‑Time Close overview.
Pros and cons
The big advantage is simplicity. You close once, can often lock your rate, and avoid applying for a second mortgage later. The tradeoff is added complexity behind the scenes, such as builder vetting, draw inspections, and detailed plans and budgets that lenders review up front.
What is different in Port St. Joe
Flood maps and insurance costs
Port St. Joe sits on the bay, so flood risk drives design, insurance, and lender requirements. FEMA’s Risk Rating 2.0 prices flood insurance based on factors like elevation, distance to water, and replacement cost, which can change premiums compared with older zone‑based pricing. Check local updates to flood maps and be sure to get early quotes, since lenders will include flood premiums in escrow and affordability. See FEMA’s explanation of Risk Rating 2.0 and Gulf County’s public notices on FIRM updates.
Coastal permits and the CCCL
If your lot is near the shoreline, it may fall within Florida’s Coastal Construction Control Line, which adds state‑level reviews on top of county permits. This can require extra engineering and extend timelines. Review the Florida DEP’s CCCL rules to understand siting and structural expectations for coastal parcels. Start with the DEP rule reference for Gulf County 62B‑26.016.
Sewer vs. septic
Lots outside town centers may need onsite septic. Gulf County requires either a septic permit or proof of a sewer connection as part of the development and building permit process. Septic evaluation and approvals can add time and cost, so plan for that early. See the county’s planning and building info via Gulf County Planning & Building references.
Wind and elevation design
Coastal high‑hazard areas require elevated foundations and flood‑resistant details. In mapped V or VE zones, foundations are often piles or columns, with breakaway walls below the design flood elevation and materials selected for flood exposure. These features improve resilience and are important for insurance and lender acceptance. For background on standards referenced by code, see this summary of ASCE 24 flood‑resistant design.
What lenders will ask for
Borrower and project documentation
You will provide the usual mortgage items like credit, income, and assets. On the project side, expect to submit a signed construction contract with a licensed builder, sealed plans and specs, and a line‑item budget. Lenders often vet the builder and require a clear draw schedule and inspection plan. Community bank guidance highlights the value of a documented draw and contingency plan, as outlined in this construction lending overview.
Permits and approvals
Lenders typically will not fund until required permits are in place or fully conditionally approved. In Gulf County, you begin with a Development Permit, then a building permit. Coastal parcels may also need a DEP CCCL permit, and septic sites need health department approvals. Check the county’s permit references here: Gulf County Planning & Building.
Flood insurance and elevation proofs
If your site is in a Special Flood Hazard Area, the lender will require a flood zone determination, an insurance binder at closing, and often an Elevation Certificate or finished floor elevation verification. FEMA’s Risk Rating 2.0 affects premiums and should be part of your payment planning.
Appraisal and value
Your appraisal is based on the home’s to‑be‑completed plans. The lender uses the as‑complete value to set loan‑to‑value limits. In coastal zones, appraisers and lenders check compliance with elevation and structural standards because those items affect insurability and market value.
Timeline and budget planning
Typical timeline
- Preapproval and project underwriting: 2 to 6 weeks as you assemble plans, contracts, and budgets.
- Permitting: a few weeks to several months depending on coastal reviews and septic needs.
- Construction: often 6 to 12 months for a single‑family home, subject to weather and inspections.
- Conversion to permanent: usually at final inspection or certificate of occupancy, per your loan terms.
Cost drivers to expect
- Elevated foundations or piles in coastal high‑hazard zones.
- Breakaway walls, elevated utilities, and flood‑resistant materials below design flood level.
- Additional engineering and state reviews if within the CCCL.
- Flood insurance premiums under Risk Rating 2.0.
- Septic design and installation when sewer is not available.
Starter checklist
- Confirm your lot’s flood zone and request a preliminary Elevation Certificate or FEMA panel lookup. Get early flood insurance quotes.
- Ask Gulf County Planning & Building if the parcel needs a DEP CCCL permit or other coastal review.
- Select a lender experienced with construction‑to‑perm loans and local coastal projects. Request their full documentation and draw checklist.
- Assemble sealed plans, a detailed builder contract, a plot plan or survey, and septic or sewer connection documentation.
- Build a contingency reserve of at least 5 to 15 percent for cost changes and delays.
Smart tips to avoid surprises
- Get insurance quotes early. Flood premiums influence your monthly escrow and approval.
- Verify whether your parcel is inside the CCCL or a VE/Coastal A zone before finalizing plans.
- Choose a licensed builder with coastal experience and a track record completing draws on time.
- Keep cash buffers. Lenders often require a contingency line to handle cost spikes or changes.
Ready to find the right lot and map a build that fits your budget and timeline? Connect with Chasity Hill for local guidance on coastal parcels, market insight, and a smooth path from dirt to keys.
FAQs
What is a construction‑to‑permanent loan and how do payments work?
- It is one loan that funds the build in stages and then converts to a long‑term mortgage. You typically pay interest only on funds drawn during construction, then begin full principal and interest after the home is complete.
Do I need flood insurance for a new build in Port St. Joe?
- If your home is in a Special Flood Hazard Area, most lenders require flood insurance at closing. Premiums use FEMA’s Risk Rating 2.0 method, so get quotes early and include them in your budget.
Which permits are required in Gulf County before building?
- You usually need a Development Permit, then a building permit. Coastal parcels may need a DEP CCCL permit, and septic sites require health approvals or proof of a sewer connection.
How do construction draws and inspections work with my builder?
- The lender releases funds in stages tied to milestones like foundation, framing, and final. An inspector verifies progress before each draw, and some lenders use third‑party inspections.
How long does the build‑to‑permanent process take?
- Plan on 2 to 6 weeks for lender approval, several weeks to months for permits, and 6 to 12 months for construction, depending on weather, materials, and inspections.
