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Construction Loan Options

Construction Permanent Loans | Land Loans

Doing it Your Way 

BECU offers financing for the entire construction process from purchasing land to paying your mortgage. Our loans offer interest-only payments during construction, with conversion to a permanent mortgage once your home is completed — with no additional fees, re-qualification or paperwork.  

Construction Permanent Loans

Construction Permanent (CP) loans are for borrowers who want to construct their custom dream home (unique build) or buy a ready-to-build home in a housing development (specification build). BECU offers CP loans to give members the convenience of lower down payments (20% vs. 30%) and a one-time loan application, approval, processing and closing to cover financing for both temporary construction costs and a permanent mortgage loan.

During the construction of your home, your lender will withdraw funds from your loan to pay contractors for materials, expenses and work completed. This draw period lasts for 6-12 months with borrowers making interest-only payments during this time. 

Once construction is complete, the draw period ends and the construction loan transitions into a permanent mortgage loan for the remainder of its term. Monthly payments are reset with the mortgage loan interest rate and include principal, interest, tax and insurance payments. 

What you can expect from a BECU construction loan:

  • Monthly withdrawals by contractors to pay for work completed

  • Monthly inspections of expenses paid and whether there are any outstanding liens against the project

  • Hiring a licensed general contractor to build your home. Owner-as-builder arrangements may be approved if more than 75% of your income comes from being a general contractor

Land Loans 

Found the perfect place to call home but not ready to build a house? Land loans let you purchase your lot today and enjoy the security of fixed-rate, interest-only payments while you finalize building plans and find a contractor. The terms of the loan fall into three separate categories:

  • Land improvement lots have a house or some type of structure on them as well as utility services, paved roads and other amenities
  • Unimproved or raw land has no residential or commercial development on it, such as a house, road or sewer line

  • Partially-improved land has utilities and paved roads but no residential construction already built. This is most often the case with ready-to-build housing developments

To get started with a construction or land loan from BECU, you'll need to make an appointment with one of our construction loan experts who will answer any questions and guide you through the process. Learn more about construction home loans.

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