What is a construction loan?

Construction-to-permanent - This loan requires just one closing. It's similar to our 7/1 Adjustable Rate Mortgage (ARM), with interest-only payments for the first 12 months. Regular payments begin with the 13th payment

• The borrower to have a minimum down payment of 20%
• The property is appraised by reviewing the plans and specifications. If the lot is paid for, it can be considered as part or all of the required down payment
• Construction loans typically require a 1% origination fee

This loan is designed for people who are building a new home. Veridian's construction loans help members save money with one closing and one set of closing costs. In addition, it includes up to 12 months of interest-only payments while the home is being built. Then it converts to permanent financing with the same low interest rate.

For more information, visit veridiancu.org/construction.

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