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Build your dream home with a construction loan.
Whether you're starting from scratch or have the land already, our construction loan options will help make your dream a reality.
Here's your chance to build the home you've always wanted. Whether you have the land or you're just starting out, here's what to keep in mind before you apply:
The minimum loan amount is $50,000.
We offer fixed-rate 6, 9, or 12-month construction loan terms. 12-month only for construction-to-permanent.
You’ll need a strong credit profile.
The loan can include the purchase of the land/lot or paying off an existing lien on the land/lot.
If you did not get a construction-to-permanent, once the builder is finished, we can help you refinance to a conventional mortgage.
Our two types of construction loans (construction-only and construction-to-permanent) will help your dream home become a reality in 5 simple steps.
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1. Apply
Our experts will walk you through the process. We'll help you get pre-approved and apply for a loan that works for you.
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2. Finalize
Before we can close the loan, we’ll need you to finalize your plans and specs with your builder. Then we’ll create a “draw schedule,” which will pay the builder from your loan.
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3. Close
Once we've approved your loan , you'll sign your documents as well as pay your closing costs and any down payment. For construction-to-permanent, you will close one time on both loans.
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4. Build
After you’ve closed, your builder can get started! We’ve partnered with Built, an online accounting platform, to help pay your builder more easily from the loan.
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5. Make it permanent
With a construction-only loan, once construction is complete, your loan will need to be refinanced into a standard long-term mortgage or otherwise paid off. With a construction-to-permanent loan, once your construction is complete, your construction loan will then convert to your permanent financing terms.
Construction Loan FAQs
What 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!
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Construction Loan Resources
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Construction Loan FAQs
Frequently asked questions about construction loans.
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Mortgage FAQs
What does pre-qualified mean? What do closing costs include? Get answers from our experts.
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