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Construction Loans

Build your dream home with our flexible construction loan options

Turn your dream home into a reality with a Construction Home Loan from SCCU! At SCCU, our loans are construction-to-permanent , meaning our members go through the application and closing process one time only – one set of documents, one set of closing costs. At key points throughout the building process, we draw funds from your loan to pay your builder. When construction is complete, we’ll work with you to convert to the permanent loan that best fits your needs.
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Product Features

Terms & Fees
Terms Up to 30 Years
Application Fees None
Pre-payment Penalties None
Intangible Tax None
Origination Fees $1,100

Construction Loans

Effective Date: August 03, 2020
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Term Interest Rate APR* Example Loan Amount Example Monthly Payment
10 Years 2.750% 2.960% $200,000 $1,908.22
15 Years 2.875% 3.019% $200,000 $1,369.17
20 Years 3.375% 3.488% $200,000 $1,147.11
30 Years 3.375% 3.455% $200,000 $884.19
SCCU construction loans are construction-to-permanent loans, with a 12-month construction period. Once construction is complete, final inspection has cleared, and certificate of occupancy (CO) has been received, the loan automatically converts from construction to the permanent loan that the member selected prior to beginning construction. If construction extends past the 12-month initial period, the rate lock will expire and the rate will be reset at the higher of current rate or the initial lock-in rate. SCCU may agree to make an exception and extend the construction phase of the loan. Any such extension may result in changes in to the rate, payment amounts, and closing costs.

During construction phase, SCCU makes payments to the builder at certain key points during construction. During this period, member loan payments are interest-only, based on the total amount of money that has been advanced by SCCU to the builder. The payments to the builder are contingent upon passing required inspections. During this phase, the interest-only payments will vary monthly, depending upon the total amount paid to the builder at the time of each payment calculation. Payment examples above are given for the permanent phase of the loan only, and do not include the interest-only construction phase payments. At initial closing, SCCU collects $1,400 to cover the costs of inspections and builder disbursement. Any funds remaining after CO is issued will be refunded to the member. If actual disbursement charges are greater than $1,400, the member will not be charged above the initial $1,400.

Frequently Asked Questions

In general, construction loan rates are typically variable-rate loans, and are therefore higher than many other types of mortgage loan rates. At Space Coast Credit Union, our new construction loans offer a variety of terms, plus fixed- and adjustable-rate options. Please call us for information on our current construction loan interest rates.

If the first home you buy is also one that you want to build, there's good news: As long as you meet the specific requirements that any type of buyer must satisfy for a construction loan, you shouldn't be held back by being a first-time buyer.

As with any loan, you will need a certain amount for a down payment, closing costs and other fees; have a good credit score and credit report; and have a history of on-time bill payments. Your debt-to-income ratio will be a factor, as well as the total expected costs to build the home you have planned. You'll also want to make sure that you'll be able to comfortably cover any cost overruns that may occur, since the construction process can hold some surprises as the project progresses.

If you're ready to build your dream home, SCCU is here to help! Get started with our fast application process online or by phone. There's no application fee and our onsite loan underwriters make sure a decision is reached quickly.

Apply online now or call Express Services:
Brevard: 321-752-2222  |  Broward: 954-704-5000  |  Miami-Dade: 305-882-5000  |  All Other Areas: 800-447-7228
 

While many parts of the mortgage loan process are the same with construction loans, there are a few differences. When it's initially set up, a home construction loan is usually a variable-rate loan during the period while the home is being built. You, your building contractor, and your SCCU loan officer will develop a draw schedule, which defines when incremental payments will be made to the contractor when specified milestones are met.

During the construction phase, which typically ranges from six to 12 months, you will make interest-only payments. When construction is completed and your new home passes inspection, a certificate of occupancy will be issued and your home is considered to be livable. At this point, your construction-to-permanent loan converts to your permanent mortgage.

To ensure you can get the best available rate when you're planning to build a new home, please contact us for up-to-date information construction loan rates.

When you're purchasing an existing home, you may have your choice of a conventional fixed-rate mortgage, adjustable rate mortgage and other mortgage products. If you want to borrow money to build a new home on your own land or purchase a home that will be built in a builder's development, a construction loan will likely have the features you need. Here are some of the differences you'll find when you're looking for a lender for your brand-new home:
  • Depending upon the type of mortgage, a traditional home loan may require five to 20 percent down, while a construction loan may be 20 percent or more.
  • Traditional home mortgage loans are typically available at lower interest rates than home construction loans. Construction loans can have more stringent requirements for qualification.
  • Construction loans require the submission of building plans, a contract with your builder, and a detailed estimate of the cost to build the house.
  • Traditional fixed-rate mortgage loans may be for 10, 15, 20 or 30 years, while construction loans are for a short term, such as one year or less.
  • A construction loan charges interest only on the amount of the loan, or the outstanding balance, that's used during the construction phase.
  • A construction loan may also include a lot loan that allows you to buy your land at the same time you're borrowing for construction.

The requirements for a new construction loan are similar to those for any type of loan related to home buying. At SCCU, your lending officer will review your credit score, your debt-to-income ratio, your bill-paying history, and more. Your down payment and closing costs will depend upon the specific loan you are applying for. If you have questions about SCCU's construction loan terms and requirements, please call our Express Services team during business hours at your local number below:
Brevard: 321-752-2222  |  Broward: 954-704-5000  |  Miami-Dade: 305-882-5000  |  All other areas: 800-447-7228

When you're building a brand-new home, a new construction loan is used to pay the home builder. With a construction loan in place, your lender makes payments to the builder in increments as each stage of construction work is completed, often at one-month intervals. At the end of construction, the you refinance with a new mortgage.

Most straightforward construction loans require interest-only payments on the amount of monthly draws. In some cases, builders will finance the construction project, which means buyers don't pay until construction is completed.

A construction-to-permanent loan is a popular option for many homeowners who are building new homes. This special type of loan simplifies new construction financing by combining a construction loan with a standard mortgage.

At Space Coast Credit Union, our construction-to-permanent loans make everything easier: You will have just one application, one set of closing costs, and one closing process. And once your new home is completed, your initial loan converts to permanent financing. That means even more options: Choose from an adjustable rate or the fixed rate that works for your budget.

Contact us or request a loan consultation with an SCCU Express Services Associate to learn more about our competitive credit union home construction loan rates.