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Construction Loans


We can help you build your dream home


construction
  • Build your dream home
  • Interest-only loan
  • Low rates
  • Experienced staff
  • Your construction and permanent financing stay with us

Planning on building a new home? Hutchinson Credit Union can help you realize your dream. Our residential construction loans feature very competitive rates and terms. We have years of valuable experience in this specialized field and can help make the building process go smoothly for you.

At HCU, we make it easy to apply for both permanent financing and the construction loan at the same time. The construction loan is granted based on the approval of your permanent financing. We take care of both stages of financing your new home. You also get the additional benefit of not having to pay duplicate closing costs on your permanent financing, which could save you hundreds of dollars.

Another option you may wish to consider is our Construction-to-Permanent loan program with a Onetime closing. Currently available as an adjustable rate mortgage, this might be just right for your needs.

Closing costs on your Construction loan consist of: Filing fees, title insurance for the lender, a construction appraisal, mortgage registration tax, and a progress inspection fee. FOR EXAMPLE: The estimated closing costs for a $150,000 construction loan would be $1,500.

  • We provide a maximum of 80% financing. We reserve the right to finance a lower percentage
  • Your down payment must be spent first on purchasing the land and funding the initial phase of construction
  • At application time we require: A complete set of blueprints, detailed bids from contractors (or a detailed estimate of construction costs), a time table estimate, and a completed residential loan application with a consent form
  • You will need to purchase builders risk insurance and Hutchinson Credit Union must be listed as loss payee
  • Money is disbursed by draws at specific phases of construction. Most contractors prefer to be paid monthly
  • At the time of each draw, HCU will inspect the property
  • At each draw, interest payments are required to cover the accumulated interest. Principal payments are optional
  • You may need to supply us with invoices to substantiate your advance request whenever a draw is given.