Help / Home Loans Construction Loan FAQsWhat types of construction loans does VACU offer?We offer two types of construction loans, a construction-only loan option and a construction-to-permanent loan option.What is a construction-to-permanent loan?Just like a construction-only loan, with a construction-to-permanent loan you can finance the cost of building a home (including the purchase of the lot or land). You’ll close on your construction loan AND permanent mortgage at one time, saving you time, money, and the headache of going through the closing process again.Can I include the purchase of the land in this loan?Yes, the loan can include both the land purchase and the construction.Can I combine my existing land loan into this construction loan?Yes, if you already have a land loan and you get a construction loan, part of the construction loan may be used to pay off the land loan.Do I have to find the builder, or do you recommend specific builders?VACU does not recommend specific builders. VACU will review and accept the builder you’ve selected.How do I use the construction loan to pay the builder?We use a digital platform called Built to help you manage and approve the draws requested by the builder in real time.If the construction is done earlier than the term of the loan, can I pay it off earlier? Yes, you may pay off the loan at any time. There is no pre-payment penalty.Once construction is finished, can VACU help with a permanent mortgage?If you chose a construction-only loan, once construction is complete, your construction-only loan needs to be refinanced into a standard long-term mortgage or otherwise paid off. We’d be more than happy to help!