Construction Loans

Construction Loans

From blueprints to move-in day, we’re here to help make your dream home a reality. Our Construction Loans offer flexible options whether you’re working with a general contractor or managing more of the process yourself. You can even include the purchase of land in your financing — or use your existing property as a starting point.

Details:

• Available with or without a general contractor, depending on your experience with the draw and sworn statement process
• Finance both land purchase and home construction, or build on land you already own
• Up to 115% loan-to-value financing available with PMI on loans over 45% LTV
• Final value determined by a licensed appraiser based on land value plus construction cost, property details, plans, and specifications
• Monthly interest-only payments during the build term (up to 12 months)
• Average closing costs around $6,000, depending on loan amount
• Construction funds held and released through draws made to the title office (up to 5 draws)
• Choose from convenient one-time or two-time close options:
  • One-time close: Same fixed rate during construction and after conversion to principal and interest payments
  • Two-time close: Fixed rate during construction; loan rewritten at current market rate after completion
• Terms range from 5 to 30 years after construction is complete
• Escrow available for property taxes and insurance once the home is finished
• Competitive rates and local servicing — payments, payoffs, and inquiries handled right here at your credit union
• Potential tax advantages¹
• Attentive, friendly service from start to finish

5 Year Balloon Option

• 20% down payment
• Payments begin with principal and interest payments
• Low closing costs
• Earn interest on the construction funds being held

Two Phase Option

• 20% down payment
• Competitive interest rates and closing costs
• Flexible draw schedule
• Lower payments during construction
• Phase One – construction
  • 12-month construction period
  • Interest only payments on the amount disbursed each month
• Phase Two – final mortgage
  • Fixed or Balloon Mortgage
  • Maximum 30-year amortization
  • Escrow available for taxes and insurance