Construction Loans

No rigmarole, we promise. Just simple one-time and two-step closings. That’s it. Whether you’re a builder-owner or contractor, we cater to your needs, your dreams and your timing.

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Construction Loans

No rigmarole, we promise. Just simple one-time and two-step closings. That’s it. Whether you’re a builder-owner or contractor, we cater to your needs, your dreams and your timing.

Construction Loans Made Easy—And Then, Even Easier

Our goal is to give you as much control over your loan as feasible. Building a new home from the ground up can be a trying experience. And we won’t get in the way, create needless worry or slow you down. To that end, an easy-does-it Construction Home Loan from Mountain America is one less thing you’ll have to worry about. Additionally, Mountain America Credit Union’s one-time or two-step loans offer you the flexibility to get exactly what you want; Mountain America's services and service providers afford you the convenience to do it hassle-free.

How we make a Construction Loan more convenient:

We call it construction financing at its finest. See for yourself.

Meet with a Mortgage Specialist

Building Your Dream Home with a One-Time or Two-Step Loan 

Your MACU mortgage specialist will break down the two types of construction loans that are available: one-time and two-step.  Based on your specific construction needs, your MACU mortgage specialist will help you understand the terms of each and will help you make the best financing decision.  

One-Time Construction Loan

The same lender is used for both construction and mortgage meaning that paperwork only needs to be filled out once and that there is only one set of closing costs. With a one-time construction loan, after the construction is complete, the loan becomes a mortgage.  One-time construction loans are ideal for buyers who:
  • Know the amount of time the project will take to be complete (most likely, these buyers will be using an experienced contractor and are basing their home’s construction off of a template)
  • Have firm building plans that they do not intend to change

Two-Step Construction Loan

The mortgage and construction loan are divided with a two-step loan, so the mortgage on the house is not closed on until it is built, which provides for the possibility of closing on a lower interest rate.  The buyer does have to re-qualify for the mortgage once the construction is complete. Additionally, with a two-step construction loan, though only interest is due during building, the entire principle is due at the end of the loan term.  Two step loans are ideal for buyers who:
  • Are custom-building a home
  • Do not have a locked-in time frame for project completion or who may want to make modifications as the work proceeds
  • Are functioning as an owner-builder
  • Want the flexibility of being able to extend the loan if need be
Once you know the type of loan that is best for you, then your mortgage specialist can help you determine other factors like the length of the construction terms as well as the length of the mortgage period

Owner-builder vs. Contractor

Building a new home is very exciting –it allows you to tailor your future dwelling to suit your specific needs. There are a variety of factors that directly impact the type of construction loan necessary to build your dream home. Mountain America Credit Union mortgage specialists can explain these in easy-to-grasp terms, so you make the right choices for your construction needs.

Factors to Consider

Obviously, when you build a home, you have to plan. Here are some things to consider that will help you make decisions once you are ready to finance:
  • Are you building a custom home, or are you using a builder’s template?
  • Are your construction plans firm or might they be subject to change (for example, is there a chance you might decide to make cosmetic upgrades once the work is underway)?
  • Who will be completing and overseeing the project: you as the owner-builder or a hired contractor?
An important note about assuming the role of the owner-builder is that Mountain America Credit Union does require you to demonstrate that you are both capable and qualified of serving as the project manager. Owner-builders are able to manage every aspect of the home construction process, which saves greatly on the cost of building the house; so if you qualify, the owner-builder option may be right for you.

Constructing a new home is both challenging and enthralling; by working closely with a mortgage specialist, buyers can eliminate some of the challenges as they become well-informed about the type of loan to acquire. They can also understand what they need to know about their building plans before they commit. 


Construction loan draws are partial disbursements of the loan to pay material suppliers and the contractor(s) during construction. This ensures funds are being used properly and construction is on track. There are a number of ways you or your contractor can receive draws from Mountain America. You may:
  • Pick them up at a branch location near you (requires two days)
  • Mail checks directly to vendors
  • Mail checks directly to contractor
  • Pick them up at our corporate headquarters
Regulations require Mountain America to have your signature on each draw request before disbursment of any funds will be made. We advise you to have your contractor sign this form also, but it is not mandatory.

Mountain America Credit Union knows how important it is for you to not only end up in a house you helped design and that you will love, but they also know how important a hassle-free financing experience is; that is why your MACU mortgage specialist will work closely with you to ensure you are educated throughout the financing process and that you make the most appropriate choices to build your dream home.  Contact a MACU mortgage specialist and turn your plans into reality.

Loan Closing Made Easy

QC.jpgBuying a home just got easier thanks to Mountain America’s Quick Close electronic mortgage process.

In addition to managing your closing documents from home, you can enjoy that convenience throughout the entire loan process.
  • Apply Online—No need to call or come into the branch to start your mortgage. One click can put you on the path to homeownership.
  • Upload Documents—Now you can save a trip to the branch by uploading all of your key mortgage application documents, including paystubs and tax information, from your computer.
  • Green and Secure—At the end of a traditional loan process, you typically leave with a huge stack of paperwork. With Quick Close, only a handful of documents are printed. The rest are securely stored on a flash drive that you can take with you.
  • One Signature—Review the documents from home and then provide a digital signature at the title office. It’s applied to the mortgage, and you’re on your way in no time.
Take advantage of a mortgage process that is quick, convenient, simple and secure. 

Meet with a Mortgage Specialist
There are two types of construction loans, one-time and two-step. Each has its pros and cons, so make sure to weigh your options and choose the one that is right for you.


With this option, borrowers pay interest only during the construction phase, and then Mountain America Credit Union automatically converts the loan to a mortgage after the home is built. There is only one set of closing costs and the one-time construction loan has the added benefit of a rate guarantee, a feature that eliminates the guess work for the final rate and loan payment (conditions apply). This gives consumers the ability to save money on fees and can keep the rate low in the event the market changes before construction is finished.


This option requires separate loans for construction and mortgage. Only interest is paid during the building stage, and the entire principal is due at the end of the term. After construction, the borrower must re-qualify for the mortgage and pay another set of closing costs. The flexibility is appealing to some consumers because they are able to take advantage of current market rates for their long-term loan, which may be lower than the rates offered on a One-Time construction modification.

Apply for your Mountain America Home Construction Loan today.

*Subject to terms and conditions. Rate protection guarantee on 1 time close. Loans subject to credit approval. See current rates and terms. The minimum payment for a loan with a 5.25% APR and 30-year term is $5.52 per $1,000 borrowed. The monthly obligation will be determined by the total loan amount at the time of closing and the term and interest rate of the loan. See our Loan Calculator for specific examples.

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