Construction Loans

Building a new home? Here's your financing blueprint.

You're designing a house with its own unique floor plan. Now all you need is a financing game plan. At TCU, we're ready to hammer out the details of a loan that will cover all the construction costs.

What do you need to get a construction loan? Of course, it starts with a vision of what you want to build. After you have that in mind, contact our qualified experts and we’ll help to make sure you’re covered.

One-Time Close*

Lock in your rate from the beginning.
Enjoy no additional construction loan fees!

Terms Up to 24 Months*

Up to two years to build your dream home. Our dedicated construction department will help you every step of the way.

Interest-Only Payments*

You already have enough to worry about during construction, so only pay for the interest on the loan during the construction phase.

Choose Your Own Builder**

It's your dream home so you should choose your own dream builder. TCU is repected by Indiana's top builders!

Have a minute to chat?

Click the "Ask TCU" icon below and select "Mortgage Live Agent" to be connected with a Mortgage Professional.

Construction Loan FAQs

Yes, part of the lender review includes the signed Construction Contract with the draw schedule for funds, details plans and a construction timeline.

During the initial construction phase, you will pay interest-only on the draw funds as they are requested by the Builder.

During the construction phase, the builder will request draws as the work is completed. TCU will send the original appraiser to the home to prepare an inspection report showing the percentage of completion for the new home. The draw amount is determined based on that percentage of completion and paid to the builder with your approval.

Yes, the appraiser will provide TCU with an inspection report at each draw request.

No, borrowed funds are allowed on home building costs only.

Signed Construction Contract between yourself and the builder or contractor
House Plans for the house you are building
Detailed specifications on how the home is being built – things like the type of heating, plumbing, electrical, kitchen, baths, etc.
Any quotes outside the building contract, such as swimming pools, sheds, landscaping, etc.
Income Documentation

Since TCU does a one-time closing, once we close the loan, it will be a 30-year mortgage. We allow you to lock in your interest rate at the time of the application and the interest rate is good for the entire 30 years.

Yes, you can.

The construction loan will cover the cost to build the home and possibly the closing costs, if the loan amount doesn’t exceed 95% of the appraised value and meet all other loan qualifications.

Any leftover funds after the house is built will be applied to the principal balance of the home.

Disclaimer

*Subject to membership requirements. APR = Annual Percentage Rate. All Credit Union loan programs, rates, terms, and conditions are subject to credit approval and may change at any time without notice. The rate example is current as of 3/1/2023 and is TCU’s best rate. Rates and terms vary depending on loan to value ratio, credit evaluation and underwriting requirements. Private Mortgage Insurance, flood and/or property hazard insurance may be required. Payment examples do not include taxes and insurance premiums. Examples provided are for informational purposes only.

**Construction loans are construction-to-permanent, with construction period up to 24 months. Interest only payments during construction period. Fees may apply for extended rate lock. Builder qualifications subject to lender review. Payment example after construction assumes 20% down on a fixed-rate loan of $1,000,000 for 30 years at 7.25% (7.295% APR), will have payments of $6,822. Payment doesn’t include the interest-only construction phase period.