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Construction Loans

Get the funding and flexibility to build

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Build Your Dream Home

Want to build your own home or have a contractor that you're ready to hire? A construction loan from Wasatch Peaks is just what you need. It's a great way to finance your short-term needs for your long-term mortgage. Chances are, you've probably seen a home being built with the help of Wasatch Peaks.

Check out our current construction loan rates.

 

 

Easy Construction Loans

Our lending department is easy to work with and ready to help you break ground. Our loans feature flexible terms and interest-only payments. Construction loans are available on 9 or 12 month terms.

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Two-Step Home Construction Loans

Here at Wasatch Peaks, your mortgage and construction loan are split using a two-step loan. First, you’ll utilize a construction loan throughout the building process of your home. During this time, you’ll make interest-only payments each month. Then, once the home is complete, you’ll re-qualify for long-term financing through a mortgage loan. This is done as a refinance, using the mortgage financing to pay off the construction loan.

These loans are particularly helpful for those who:

  • Are building a custom home
  • Are building their own home as an owner-builder
  • May need to extend the loan
  • Would like flexibility in loan options like interest rate, term, and loan amount
  • Do not have a set time frame for building the home and may need to make adjustments

Our mortgage specialists can help you throughout the process. This includes the exploring options like the loan rate and length of the construction term and mortgage.

Apply now!

Frequently Asked Questions

  • How much can I borrow?

    We cover up to 80% of the estimated appraisal value. There is also a 20% down payment required.

  • Can the construction loan cover the land?

    Yes, a construction loan can cover land costs along with the labor and materials for the home. The first draw from the loan can pay for the lot.

  • Do you pay on a construction loan while it’s being built?

    Yes, borrowers are required to make interest only payments during the time that their home is being built. This is typically paid as a monthly payment.

  • Is it harder to get a construction loan than a mortgage loan?

    The approval process for a construction loan is different than that of a mortgage. Due to the risks associated with construction, lenders may require a larger down payment and have a higher interest rate compared to a mortgage loan.

  • What do I need to provide to get a construction loan?

    Though similar to a mortgage loan, there are a few extra requirements necessary to get a construction loan.

    In order to get a construction loan, you’ll need:

    • Proof of income and employment
    • A down payment that meets at least the minimum required
    • A detailed description of the construction project
    • A qualified builder
    • An appraisal for the property value
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Wasatch Peaks Credit Union 4723 Harrison Blvd Ogden, Utah 84403
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