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About Construction Loans

Build, Buy or Renovate?

Home buyers who choose to construct a brand new house or substantially renovate an old home go through a different mortgage process than a traditional home purchase.

Choosing a Loan 

Financing your building project will depend on how developed your land is, as well as when and how you plan to build on it. Construction loans are for buyers ready to build within the next 12 months, while land loans have longer or uncertain timeframes for construction.

Borrowers who want to buy a fixer-upper or improve their existing home can take out a HomeStyle® Renovation Mortgage rather than using home equity or a second mortgage to pay for construction costs. Learn more about BECU's loan options.

What you'll need to qualify for a construction loan:

  • Permits — Copies of active licenses, permits and contracts for all construction, contractors and subcontractors

  • Reserves — Proof of 9-12 months in reserve funds to cover construction costs

  • Down payment — At least 20% of the loan amount to be paid at closing

  • Blueprints — Detailed plans and specifications for your new home

Need more information?

Get in touch with a BECU Mortgage Advisor who specializes in construction loans. We can answer your questions and help find the loan that's right for you. Give us a call at 800-233-2328. We're happy to answer your questions.


Benefits of BECU Construction Loans May Include

Member Consultant
Partner with local experts in home construction
Idea / Energy
Get advice from construction loan officers
Put down less at closing (20% vs. 30%)
Savings / Early Savers
Save time and money with one closing, not two

Loans are subject to credit and underwriting approval.

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