KNOW YOUR
FINANCING OPTIONS
Choosing the right financing option is as important as the actual building of your home. You will have a greater level of satisfaction and financial stability as you look at your options and decide what is best for you and your family. At USU Credit Union, our Mortgage Experts are knowledgeable about the options for financing and ready to speak with you about what best suits your needs as you transition from your lot loan to building your new home.
Why Choose USU Credit Union? Local Mortgage Experts, Lowest Rates and Fees
We are a not-for-profit institution, and as such, our top priority is serving our members and making sure their needs are met. USU Credit Union offers several construction loan options and we survey our competitors regularly to ensure we have the best rates and fees in the marketplace. Our fee structure is simple: We disclose our fees at the beginning of the loan process to eliminate any surprises as the loan moves forward.
USU Credit Union offers competitive rates for construction insurance, homeowner’s insurance, and title insurance. We service each phase of the construction process, starting with your loan application, all the way through to the completion of your new home. Your loan will be underwritten, approved, and closed by our Mortgage Experts. Our construction department then facilitates and manages your construction loan and draws. Once your home is complete, Goldenwest will assist you with your long-term financing. We provide these services to add transparency and convenience to the loan process and save you costly third-party fees you may pay with other lenders.
We are Here for You
More than likely, you will have many questions about how to move forward with building your dream home. Asking questions and giving your input is encouraged and essential to helping you stay informed throughout the process. Our Mortgage Experts will listen to your needs and assist you in making educated decisions.
One-time Close vs. Two-time Close: How to Choose?
In the beginning of the building process, you will decide which construction loan option will work for you. Your USU Credit Union Mortgage Expert will help you make the best decision based on your finances and needs.
USU Credit Union offers two options for construction loans. The first is a one-time close construction loan. This enables you to secure a commitment and an interest rate with your long-term financing at construction closing. With the one closing, you will pay only one set of closing costs, however, construction must be complete within a 12-month period. The interest rate and loan amount are locked in during the construction term. Upon completion of construction, the loan converts to a long-term mortgage and monthly payments begin.
The second option is a two-time close construction loan. This loan allows you to apply and qualify for a construction loan and a separate long-term mortgage. Once the construction on your home is completed, your construction loan will be refinanced into a new, long-term mortgage. The refinance offers you the flexibility to choose the mortgage product, term, rate, and loan amount. Whichever loan option you decide on, your USU Credit Union Mortgage Expert is here to help.
How Much Money Do I Need to Put Down?
USU Credit Union offers construction loans with as low as 10% down. The down payment may come from cash, lot equity, or building costs paid upfront. Consider the following: Do you have an existing home that you will need to sell to satisfy the down payment? When is the best time to sell for you and your family? Can you use the equity on your current home to build your new home? Will you qualify with both house payments? Other items to consider: landscaping, fencing, detached garages, pools, sport courts, etc., will require extra money. Typically, items such as these are not included in the construction loan and will have to come out of pocket. The more you put down, the less your overall loan amount and monthly payment will be.
How Much of a Loan Can I Qualify For? Set Your Budget
Speak to your USU Credit Union mortgage expert about your individualized down payment requirements based on your financial scenario to determine your loan amount. Your mortgage expert will provide you with a pre-approval and go over the details of your personal loan terms and a breakdown. The breakdown will include your total loan amount, cost to build, closing costs, and interest payments. This will allow you to set a budget when designing your home and estimate your final mortgage payment. While working through the design process, we encourage you to reach out to your Mortgage Expert with any questions including requests for updated Loan Estimates. We are happy to work through these scenarios with you.
Cash in Your Lot Loan Rewards
You made a great decision to finance your lot with USU Credit Union. Not only did you get the best interest rate, but the added confidence in knowing your Mortgage Expert will assist you in the transition to the construction loan. As an added benefit, USU Credit Union will give you a credit of one-half the origination fee charged on the lot loan to be applied towards your new USU Credit Union construction loan. Remember, the reason you purchased your lot was to build a home, so take advantage of this great reward!
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