What is a construction loan?

A loan to finance the construction of your new home. Weekly unlimited draws are available, in-house underwriting, and 48-hour draw turnaround.

How is a construction loan different from a traditional mortgage?

A construction loan is designed to release funds to finance the construction of your new home. A traditional mortgage is for purchasing a previously built home.

What is the difference between One-Time or Two-Time closing?

One-time closing includes a single closing. Upon completion of construction, the loan coverts to a long-term mortgage; monthly payments will begin. Two-time closing includes closing two separate loans. The construction loan will be the first initial loan. Once construction is completed, the loan will be refinanced into a long-term mortgage. Each closing type includes benefits and flexibility.

Will a down payment be required for a construction loan?

Requirements may rely on eligibility and credit history. If you financed a lot loan, your equity has been growing. Take advantage of your equity for your down payment. For additional questions regarding your lot loan to construction loan, reach out to your Mortgage Loan Officer or visit a branch near you.

Can self-employed borrowers qualify?

Yes. Additional documentation will be required to verify income. USU Credit Union is an Equal Housing Lender.

What happens when construction is completed?

Firstly, congratulations! Your new home is built. When construction is completed, depending on your closing type, your construction loan can either be converted to a long-term mortgage with one-time closing or be refinanced into a long-term mortgage with two-time closing.

What closing costs can be expected with a construction loan?

Closing costs may vary depending on the loan amount, location, and project type. Generally, it is recommended to expect 2% - 3% of the loan amount.

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Construction Loans

Building your dream home is easy and affordable when you choose USU Credit Union for your Construction Loan.

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Benefits of a USU Credit Union Construction Loan

Competitive low rates
In-house underwriting
Weekly unlimited draws
48-hour draw turnaround
Owner Builder or Contractor Builder

1X Close Float-Down Option

If rates decrease in the future, you have the opportunity to request the lower rate upon receipt of Certificate of Occupancy and Appraisal.

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Construction Loan Rates*

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Email us

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Call us directly

801-786-8400

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Choose a Closing Type

One-Time Close Construction Loan

Why choose our One-Time Close Construction Loan?

Enjoy a single closing with various benefits. Streamline your construction financing with one convenient closing, saving time and reducing costs.

Interest-only payments are made during the construction phase with monthly payment amounts increasing as funds are utilized.

Upon completion of construction, the loan converts to a long-term mortgage and monthly payments begin.

Up to 90% financing
Construction must be complete within a 12-month period
As low as 1% origination fee
Fixed Construction Loan rate
7/1 & 5/1 ARM long term mortgage
Float-down rate option upon construction completion

Two-Time Close Construction Loan

Why choose our Two-Time Close Construction Loan?

Our Two-Time Close Construction Loans give you more flexibility and control over your financing throughout the building process.

Two separate loans: Start with a Construction Loan to cover the build. Once your project is complete, the Construction Loan will be rolled into a long-term mortgage with a refinance. This transition gives you the flexibility to choose the best loan terms available and the option to increase your loan amount if needed.

Up to 90% financing
Up to 12-month term, with extension options
As low as .50% origination fee
Fixed Construction Loan rate

Start Your Build with Confidence

Whether you're building a custom home, an ADU (Accessory Dwelling Unit), or a unique barndominium, we've got you covered with our flexible construction loan options. Our loans are designed to make your dream project a reality with features that simplify the process and save you money.

Nontraditional Dwelling Type?

Accessory Dwelling Unit (ADU)
USU Credit Union is committed to focusing finding solutions for aspiring homeowners! We are proud to now offer ADU Financing.
- Affordability: Generate rental income to offset your mortgage payments
- Investment: Turn unused space to a profitable asset
- Lifestyle: Living space for family and friends
- Down payment: Low to no down payment options
- New construction with ADU: attached or detached
- Existing home with new construction ADU: 1st or 2nd Mortgage
- Phased new construction: ADU today, dream home tomorrow
Barndominium
- Up to 90% Financing
- One-Time Close and Two-Time Close Construction Loan Options
Barndominium must meet the following conditions:
- Home is built on footings and foundation
- Home is a traditional-stick-built

Choose the Right Builder

A Builder looking over plans with an excited couple.

Contract Builder

Looking to build your dream home with the use of a qualified licensed general contractor? USU Credit Union offers financing with competitive interest rates with a low-down payment.

Up to 90% financing
One-Time Close and Two-Time Close Construction Loan options

A construction worker or home owner working on a ladder inside a roughed in home

Owner Builder

Looking to build your dream home by yourself? USU Credit Union offers financing with competitive interest rates for borrowers who can demonstrate qualified self-build experience.

Up to 85% financing
One-Time Close and Two-Time Close Construction Loan options
Must provide Owner-Builder Letter detailing building experience

From Lot Loan to New Home

Learn about how to navigate building your dream home

Learn More

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Ready to Get Started?

Connect with one of our Mortgage Loan Officers to discuss your vision and explore your financing options.