Lot & Construction Loans

So you’re interested in building a home, and may need financing to purchase your land or cover construction costs? Here’s some information you might find helpful as you move along your journey.

What is a Construction Loan?

A construction loan is a type of short-term financing designed specifically for construction or renovation projects. It provides funds to cover the costs of building a new home, undertaking significant renovations, or constructing commercial properties.

Unlike a traditional mortgage, which is disbursed in a lump sum, a construction loan is typically disbursed in stages or "draws" as the project progresses. These draws are based on the completion of specific milestones or stages of construction, ensuring that the funds are utilized appropriately.

Construction loans often have flexible terms and may require interest-only payments during the construction phase, with the balance due at the end of the project. Once the construction is complete, borrowers usually refinance the construction loan into a long-term mortgage or pay off the remaining balance.

What is a Lot or Land Loan?

A lot or land loan is a special kind of financing designed for the purchase of undeveloped land or lots, with the purpose of building a home or structure in the future.

They typically have different terms and conditions compared to mortgage loans and may have shorter repayment periods, higher interest rates, and require a larger down payment.

Does PHCU Offer Construction or Lot Loans?

While we strive to provide the best possible financial solutions to our valued members, at this time, we do not currently offer construction or lot loans.

We understand that these types of loans can be essential for certain projects or investments. While we may not be able to assist you with construction or lot loans, we are more than happy to explore other loan options that may meet your financial needs.

Our dedicated team is available to discuss alternative financing options or answer any questions you may have. Please don’t hesitate to reach out to us at (803) 978-2101 option 5.