Residential Home Construction
Make your dream home a reality with Rio Grande Credit Union
Planning to build or remodel your dream home? If so, a construction loan may be right for you. Construction loans are short-term loans used for new home construction. These loans offer a short-term, fixed-rate construction period which converts to a permanent fixed-rate mortgage upon completion of construction. From start to finish, we’ll work with you and the licensed builder of your choice.
- Payments are interest-only on funds advanced during the construction phase
- Draws advanced to the member, as progress of construction is completed
- Competitive, fixed rate loans
- Land can be used as equity
- Upon completion, our mortgage team is available to support you with your permanent mortgage!
Home Construction Loan Features
- Up to 80% LTV financing or 90% of cost, whichever is less
- 9 or 12-month terms available
- Flexible, local draws or disbursements
- Local servicing—make payments at the branch
Build the home of your dreams
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What Do I Need?
- Can only be used for single-family properties and the primary residence; Large remodel projects can also be done using this product
- Home must be built using a third-party licensed General Contractor using the builder of your choice.
- Construction must not have started prior to the closing the construction loan.
- Home must be completed within 12 months of the construction note signing
Documents We'll Need
- Final construction plans and specifications to obtain an appraisal
- Purchase agreement for land (if purchasing land)
- Certificate of Occupancy upon final inspection
- Contract with the builder
- Cost Breakdown
- Builder resume and license