Construction Loans
At Aspire Credit Union, we understand that building your dream home can be exciting but daunting. That’s why we offer construction loans to help make your dream a reality.
Our construction loans are available for residents in Minot, ND, and the surrounding areas. Whether you’re looking to build a new primary residence or a vacation home, we have flexible loan options to meet your needs.
So go ahead and start building!
Benefits of Construction Loans
Competitive Rates
Aspire Credit Union often offer competitive interest rates on construction loans. This can result in lower monthly payments and overall cost savings throughout the construction process.
Personalized Service
When you opt for a construction loan through Aspire Credit Union, you can expect a more tailored experience with dedicated support and guidance, ensuring your specific needs are met throughout the loan process.
Flexible Terms
Aspire Credit Union typically offers flexible terms and repayment options on construction loans. This can include extended loan terms, and the ability to customize your payment schedule to fit your financial situation, providing you with greater flexibility and control over your loan agreement.
FREQUENTLY ASKED QUESTIONS
What is a construction loan, and how does it differ from a traditional mortgage?
A construction loan is specifically designed to finance the building of a new home or major renovations. Unlike a traditional mortgage where you receive the full loan amount upfront, with a construction loan, funds are typically distributed in stages as the project progresses.
What are the requirements for obtaining a construction loan?
Requirements for a construction loan may include a construction plan, a strong credit score, a down payment, and proof of income. Lenders may also assess the value of the project and the borrower’s ability to repay the loan.
Some of the more specific lists include:
- 20% down (can include land equity)
- 12-month interest-only construction period
- No limit on the number of draw requests
- General contractor NOT required*
- Requires membership
How long is the repayment period for a construction loan?
The repayment period for a construction loan can vary but is typically shorter than a traditional mortgage. Our construction loan repayment term is typically around on year. During that time the borrower makes interest-only payments. Once the construction is complete, the loan may be converted into a traditional mortgage or paid off in full.
