Building is your chance to have everything you want in a home, but the construction loan process can be complicated.
Disbursement of a construction loan works differently than a traditional mortgage. Instead of transferring a lump sum, home construction loans are paid to the builder in installments, called “draws.” Each draw coincides with an important phase of the project, such as pouring the foundation, framing and finishing work.
Construction loans are shorter-term loans that cover the cost of building or rehabilitating a house. With a construction loan from TCU Mortgage — with financing terms up to 12 months — you benefit from a straightforward plan with a set interest rate.
In addition to using the builder of your choice*, during the construction phase you'll make interest-only payments and after completion the loan becomes permanent with a 15-year or 30-year term. And you'll only have to go through the closing process once, saving thousands of dollars.
Because the process of building a home has lots of moving parts, it’s important to select your financing with care. Knowing how construction loans operate will speed the approval process so contractors can start building your perfect home.
Meet with a TCU Mortgage Originator for details on how to get started. Find a TCU Mortgage Originator near you at tcunet.mortgagewebcenter.com.
Builder qualifications subject to lender review. All loans subject to credit approval and membership requirements. See Products and Services Details for more information.