Land & Construction Loans
Are you looking to purchase land or break ground on a new house? We can help.
If you’d like to buy a plot of land, we can finance up to $200,000 per property per member. You’ll get a fixed rate for a term of up to 120 months.
Loans are available for construction on personal residences. Once construction is complete, these loans convert to fixed rate mortgages. We can finance up to 80% loan to value for a first mortgage with no second lien or 75% loan to value for a first mortgage with an accompanying second mortgage of up to 90% loan to value. The maximum term is 30 years, and the following additional rules apply.
- The dwelling will be appraised based on the value upon completion, and this appraised value, or the cost of construction plus the cost of the land, whichever is lower, will be used to determine the loan amount.
- Both during and after the construction period, principal and interest payments must be made on the full amount of the loan. Because the interest rate and payment amount will be unchanged throughout the loan, there is no need to refinance at the end of the construction term.
- The standard first mortgage rate and/or second mortgage rate, as applicable, will be charged, plus one additional point. Construction loans will be made on one-unit personal property residences only.
- Members will have eight months to complete construction of the dwelling. If the construction stage is anticipated to exceed this timeframe, extensions may, at the sole discretion of the credit union, be considered on a case by case basis. Without such prior written approval from the credit union, construction not completed within the eight-month term will automatically put the loan in default, and the credit union may take appropriate action to ensure completion, begin foreclosure proceedings, or substitute other collateral as needed.
- A builder profile must be submitted for each loan. All builders must be licensed contractors with at least three years’ experience in single family home construction, must maintain worker’s compensation insurance and must have liability insurance with at minimum a $1,000,000 limit.