Construction Loans

Let us nail down the details so you can build your dream home while saving time and $$ with the help of our Mortgage Team in Manitowoc and Sheboygan.

With a Construction Loan from UnitedOne Credit Union, you’ll have the funds you need to purchase land and construct your home all with one loan – from groundbreaking to move-in.

Benefits of a Construction Loan from UnitedOne

• Easy process with only one application, one appraisal and one closing
• Lock in your interest rate as soon as you start the build
• Interest only payments for the first 9 months (draw period)
• Save time and money with only one closing for loan covering construction and mortgage
• Already own your land? Use it as equity to secure your down payment instead of making a cash-down payment

How does a Construction Loan from UnitedOne work?

A Construction Loan covers both the interim building phase and the permanent loan once the home is finished, eliminating the need for multiple loans.

The first 9 months of the loan, also known as the draw period, disburses funds to contractors or subcontractors during the building phase. This period features a lower rate, interest only payment on outstanding balances plus property taxes if applicable. Once the house is finished, the loan rolls automatically converts to an ARM loan/permanent financing (for primary residence/second homes only). One of the biggest benefits of a Construction Loan is it features a one-time close, which means one-time closing costs to save you money!

How is the value of home that isn’t built yet determined?
An appraisal is obtained using your bids and building plans. The appraiser walks the land and gives us a “subject to” completion value.

What if I need to purchase the lot the home will be built on?
The initial draw disbursement includes the payoff of the lot (if applicable) less your down payment.

Can Construction Loans be used for anything else other than new home builds?
A Construction Loan can also be used for a bigger remodeling project to an existing home, like adding a second floor or gutting a full house. We typically would not need a Construction Loan for smaller projects, like windows, roofing, siding, or cosmetic updates to the interior.