Construction Loans
Build Your Future
Helping you build your dream home is one of the ways we’re here to be your trusted financial partner. Welcome to competitive rates, personal service, and peace of mind.
Construction Loan Features
Down payment as low as 10%1. Equity in owned land can count toward down payment.
Interest-only payments1 on outstanding loan balance during construction period.
No cost for appraisal, processing and underwriting, builder draw inspections, credit report, or flood certification, and a low origination fee.
Option to drop (or "float-down"2) interest rate at time of conversion to mortgage if rates have dropped.
Loan amounts up to $2.5 million.
One-time close in as few as 30 days.
Let’s break ground on your dream home, together.
Meet our Team!
Contact one of our experienced construction loan consultants to learn more and apply.
Browse Common Questions
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A construction to permanent loan is a type of mortgage for those who are building a home. It is also referred to as a “one-time, single-close” or “construction-perm loan.” Essentially, it funds the purchase of land and the costs to construct the home on the land. Once construction is complete, the loan will convert into a traditional mortgage.
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Yes, as long as they meet lending guidelines for loan approval.
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- The builder, their draw schedule, and additional required information must be reviewed and accepted by PSECU.
- PSECU must review the plans & specs for the home and provide them to the appraiser.
- Must be primary or secondary/vacation home. Investment properties are not allowed.
- Must be a single-family detached house.
- Loan-to-value cannot exceed 90%.
- Construction cannot begin until after settlement has taken place.
- Additional program specific requirements may apply. Your mortgage consultant can help you through any additional requirements.
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All work must be completed by the accepted builder.
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12 months
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No, there are options to purchase the land as part of the construction loan or the land can already have been purchased. If you financed the purchase of the land and still owe money on the land loan, you can refinance part or all of the balance owed when you apply for and close on the construction loan. You may call and speak with a mortgage consultant for more information on what is involved for both options.
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Same as applying for a traditional home loan – an applicant can apply online or by contacting one of our mortgage consultants at 800.237.7328, extension 3878. If applying online, the applicant will select “construction loan” in the application.
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At the time of conversion to a mortgage, the member can request to have their rate dropped (often called a "float-down2") if mortgage interest rates have dropped. The rate they are dropping to must be at least 0.25% lower to use the float-down option.
Learn more
1Financing up to 90% LTV is available except on 1/1 Jumbo Construction ARM’s, which are limited to 80% LTV. Amounts greater than 80% LTV are subject to private mortgage insurance requirements. Principal and interest payments will apply during the permanent phase of financing after the construction period ends. Construction financing only applies to Primary Residences and 2nd homes. Construction loans do not apply to modular, prefabricated, or panelized dwellings. Construction loan terms cannot be combined with the First Time Homebuyer Program. Additional restrictions may apply. Please contact us for specific rate information, mortgage loan limits, or down payment requirements at 800.237.7328, extension 3878.
2There is a one-time float down option. This option is only available if the mortgage rates offered by PSECU during your 15-day Conversion Period have gone down by more than one-quarter of a percentage point (.25%) from the rate listed on your permanent financing promissory note. Fees apply. For more information, please contact your loan officer.
Have Questions? We're Here to Help
Need to talk to us directly? Call (800) 237-7328 ext. 3878 or send an inquiry.
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