Construction Loans
Building the Home of Your Dreams.
Make your blueprint a reality
When you’re looking for a loan to build a home, Patriot is here to help you every step of the way. We want to make your dream of building your very own custom home a reality.
What is a Construction Loan?
A construction loan is a first-mortgage loan that is divided into two phases: a 9 month construction phase followed by an end loan that would be chosen from our suite of conventional mortgage loan options, including a 30 or 15 year fixed mortgage.
Our construction loans also include these benefits:
- Up to 95% loan to value financing*
- Easy online application
- Streamlined builder approval and draw process
- Low interest rates and closing costs
- Single settlement loan, unlike some other construction loans which require two settlements – one for each phase of the loan
How does a construction loan work?
Construction mortgage loans have multiple parts, besides the usual pre-approval and closing. Extra steps you need to know about include…
Builder Approval
All builders must be approved by Patriot. Construction loan builders must meet approval guidelines, a few are:
- Current Unexpired License
- Proof of Insurance (Liability and Workers Compensation Policies)
- Builder must submit personal and corporate income taxes from the previous two calendar years and a Profit and Loss balance sheet
- Personal and Business credit reports must show a satisfactory history of repaying creditors and suppliers
Draw (or Disbursement) Schedule
During the 9 month construction phase, the funds are dispersed in a draw schedule as work is completed. The draw schedule will look like this:
- Land Acquisition draw
- First Draw – Slab/foundation
- Second Draw – Framing and rough carpentry
- Third Draw – Roof and mechanicals
- Fourth Draw – Exterior and interior finishes
- Fifth Draw – Trim-Out
- Final Draw – Project closeout
Meet our Team
Our mortgage consultants use local underwriting and an easy application process. Consult with a mortgage expert to find out more about construction loans.
Have Questions? We Can Help.
Back to top Disclosures
-
This credit union is federally insured by the National Credit Union Administration.
-
Equal Housing Lender