Construction/Perm financing is used to build a new home. You may own the property or it may included in in the over financing. If you have owned the property for a year or more the appraised value may be used. It you have owned less than 1 year, then the purchase price will be used. Funds are released to pay the contractor in draws. You only pay on the amount funded during construction. At the end of the construction period the remaining time converts to an Adjustable Rate Mortgage (ARM) for a total of 5 or 7 years. If a fixed loan is desired, then a refinance of the entire loan will be necessary, including all the costs of a refi.
General criteria in addition to the above:
Primary Home - 80% loan to value up to $1,000,000
65% from $1,000,000 to $2,000,000
Second Home - 75% loan to value up to $1,000,000
60% from $1,000,000 to $2,000,000
Foreign National - 70% loan to value up to $1,000,000 (must have a credit score)