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With competitive construction loans and renovation loans, UFirst can help you build or remodel the perfect home

Finding the ideal home can be like searching for a needle in a haystack, but a construction loan may eliminate the search process so, instead, you can focus on building your perfect home -- no exceptions, no concessions, just your home from the ground up.

At UFirst Credit Union, our goal is to make finding the right loan easy. Our loan specialists can help you build the perfect construction loan so you can begin your building process with ample financing from a trusted partner. 

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What Is A Construction Loan?

A construction loan is a short-term loan that provides the funds required to construct a building or other real estate project. These are most common for large construction projects, in which the builder or home buyer takes out a construction loan to cover the cost of construction before they are able to obtain long-term funding. 

Build Your Dream Home With a Construction Loan 

If you’re ready to start building, we’re ready to help you get financing. At UFirst Credit Union, we offer several construction loan types and we can customize construction loans to ensure you have the most appropriate loan for you and your project.

Here are some common construction loans that could be perfect for your future home:

new house

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One-Time Loan

couple in front of house construction. build your dream home.One-time home construction loans are one of the most streamlined types of construction loans. These loans establish one lender for both the construction and mortgage of the home, keeping all the moving parts under one roof (and it means paperwork only needs to be filled out once). After the home is finished, a one-time loan then becomes the mortgage. One-time loans are best for buyers who have a firm construction plan that won’t be changed during the building process, or if the homebuyer has a set-in-stone deadline for when the project will be complete.

Two-Step Close Loan

couple looking at plans.

As the name suggests, a two-step close loan has two parts. The first is the initial construction loan and the second is the mortgage. Unlike a one-time loan, the mortgage is not included in the initial loan. This offers the benefit of potentially closing on a lower construction loan rate, but also requires the buyer to then re-qualify for the mortgage once the home is finished. 

With this type of loan, only interest will be paid on the loan while the home is being built. This keeps payments low but also leaves the full principal due when the loan term is finished. This type of loan is suitable for buyers building a custom home or looking for flexibility in their loan.

Lot Loans

Lot loans are a good option for financing your new home.

Lot loans are the necessary (and best) construction loan type when home-builders must first purchase a new piece of land (called a lot) on which to build their new home. Once the perfect property is discovered, the lot loan will provide the financing to secure the property.

A common misconception is that lot loans are the same as construction loans. While each loan type can be necessary to build your dream home, the biggest difference is that the lot loan pays for the actual property where the home is being built, and a construction loan pays for the building of the home itself.

Learn More About Lot Loans Here

The Benefits of a Credit Union Construction Loan?

At UFirst Credit Union, we offer custom construction loans so you can find the perfect loan for you and your build. In addition to comprehensive options and loan customization, we also offer competitive construction loan rates, flexible terms, loan amounts up to 95% of the future value of your home, interest-only payments during construction, and other benefits that can help you stay financially strong.

We are also proud to work closely with the State Construction Registry to ensure quality construction management. If you’re ready to find the right construction loan in Utah, UFirst Credit Union is here to help. Apply today and we’ll find the perfect construction loan for your dream home.


Apply Today for a Construction Loan

Have Questions or Need Assistance?

Contact a Mortgage Specialist


Loans subject to credit approval. See current rates and terms. Construction financing will require a minimum down payment of 5%. For example a $100,000 loan approved at 95% of value would require a down payment of $5,000. The minimum payment for a $95,000 loan with a 4.24%, $335.67 for the first 12 months during the interest-only period, and then, approximately, $480.79 after the end of interest-only period. This payment example does not include taxes and insurance. Your actual payment may be higher. The monthly obligation will be determined by the total loan amount at the time of closing and the term and interest rate of the loan.

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