Construction Loans
We are pleased to offer a variety of Construction Permanent Loan programs which enable our customers to finance the construction of a new home. Construction Permanent Loans offer the convenience of a one time loan application, approval, processing documentation and loan closing covering both the Construction and the Permanent Mortgage Loan.
The Construction Permanent Loan offers a Construction Draw Period, which allows us to disburse loan funds during the course of construction based on the inspection of the property and on the percentage of completion of the home. Interest only payments are required during the construction draw period. Upon completion of construction and receipt of final inspection and a certificate of occupancy, the loan transitions into the permanent mortgage loan. At that point, standard mortgage payments are based on the permanent loan interest rate and the loan term begins.
Members may apply and receive online approval for our construction permanent loan programs. Special Construction loan documentation is required.
Construction Permanent Loan Products
We are pleased to offer a variety of Construction Permanent Loan Products, as well as a variety of Construction Draw periods.
Our Construction Permanent Loans offer your choice of initial 6, 9 or 12 Month Construction Draw Period. During the Construction Draw Period, loan disbursements may be requested based on the completion of construction, an inspection and the percentage of completion. During the Construction Draw Period, loan payments are interest only payments and are based on the disbursed balance of the loan.
Upon completion of the Construction, the loan transitions to become your Permanent Mortgage Loan. The Permanent Mortgage loan is based on your initial loan application and approval for a Permanent Mortgage Loan. You may select a 30, 20, or 15 year fixed rate mortgage loan or one of our 3/1, or 5/1 Adjustable Rate Mortgage (ARM) Programs.
Construction Permanent Documents
Construction Permanent Loans require additional loan documentation, underwriting and lender review. In addition to standard Credit Underwriting and Documentation, a lender will require documentation on the home to be built and the builder contracted to do the work.
An example of some of the documentation required follows:
- Construction Loan Review Documentation
- Survey or Plot Plan, Plans and Specifications, Material Specifications, Construction Contract, Construction Cost Breakdown, Building Permits, Septic/Sewer Perc, Utility Permits and Soils Test, if required. Lender review and approval of construction loan exhibits is required.
- Construction Builder Review Documentation
- Resume, Articles of Incorporation, if applicable, Contractor's License, Copy of Liability Insurance, Copy of Workman's Compensation insurance, financial statement, current inventory, and tax return. Lender review and approval of builder is required.
Please contact us for a construction loan checklist of required documentation.
