Cogent Bank (Tampa)

One Closing, One Loan, Less Hassle

The traditional path to financing a new home build involves two separate loans — a short-term construction loan during building, then a permanent mortgage after completion. That means two applications, two closings, two sets of closing costs, and the risk that interest rates move against you between the two transactions. Cogent Bank's construction-to-permanent mortgage eliminates this by combining both phases into a single loan with one closing. You lock your permanent rate upfront, make interest-only payments during the construction phase, and automatically convert to a permanent mortgage when building is complete.

For Tampa Bay custom home builders and their clients, this single-close structure simplifies a process that is already stressful enough. The homeowner knows their permanent rate from day one — no anxiety about rate increases during a six-month build. The builder benefits from a lending partner who has already committed to the permanent financing, reducing the risk of a client losing their mortgage approval between groundbreaking and certificate of occupancy.

Cogent Bank's Florida roots mean local underwriting decisions by people who understand the Tampa construction market — the lot values, the construction cost benchmarks, and the builder qualifications that determine whether a project pencils out. This local knowledge produces faster decisions and more informed lending than a national bank processing your file through an out-of-state committee.

The ConstructionPerks Take

We think Cogent Bank is best for: Custom home builders and owner-builders in the Tampa Bay area who want the simplicity of a single-close construction-to-permanent loan with local Florida underwriting and the rate certainty that protects against market fluctuations during the build.

One thing to think about is the project type. Construction-to-permanent loans are designed for owner-occupied residential construction — the homeowner building their own home. Speculative builders constructing homes for sale typically need a different loan product (spec construction loans), and commercial developers need commercial construction financing. Confirm that Cogent's product matches your specific project type.

Another consideration is the rate lock advantage. In a volatile interest rate environment, locking your permanent rate at the start of construction provides meaningful financial certainty. If rates rise during your 6-12 month build, you are protected. The peace of mind for homeowner-clients is a selling point that builders can leverage when competing against resale homes that close with immediate rate certainty.

Frequently Asked Questions

What is a construction-to-permanent loan?

A construction-to-permanent loan combines the construction financing phase and the permanent mortgage into a single loan with one closing. You make interest-only payments during construction, then automatically convert to a permanent amortizing mortgage when the home is complete — saving the time and cost of a second closing.

Does Cogent Bank offer construction loans in Tampa?

Yes, Cogent Bank provides construction-to-permanent mortgage loans for residential construction in the Tampa Bay market. Their Florida-based lending team makes local underwriting decisions with knowledge of the Tampa construction market.

Do I lock my rate before construction starts?

Yes, the rate is locked at closing before construction begins. This protects you from interest rate increases during the building period — a significant advantage in volatile rate environments where rates can move substantially during a 6-12 month construction timeline.

Can spec builders use construction-to-permanent loans?

Construction-to-permanent loans are primarily designed for owner-occupied residential construction. Speculative builders constructing homes for sale typically need spec construction loan products with different terms and qualification requirements. Contact Cogent to discuss which product fits your specific situation.

How long does the construction phase last?

The construction phase typically runs 6-18 months depending on the complexity and size of the home. During this period, funds are released in draws as construction milestones are completed, and you make interest-only payments on the amount disbursed.