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 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. 

How we make a Construction Loan more convenient:

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

Meet with a Mortgage Specialist

One-time vs. Two-step

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.

One-Time

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.

Two-Step

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.

Owner-builder vs. Contractor

When building a new home, you basically have two options—you can hire a contractor or, if you are qualified, you can serve as the general contractor.

The general contractor coordinates everything from the budget to hiring subcontractors, requesting inspections and obtaining building permits. Most property owners choose to hire a professional to serve as the general contractor.

However, if you are able to demonstrate their ability and qualification to manage your own construction project, you can be the general contractor. This is called an owner-builder and it gives you the freedom to manage the build on your own and handle every detail of the construction project.

Both options are supported by Mountain America. So whichever you choose, we are here to support you.

Draws

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.

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.

One-Time

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.

Two-Step

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.

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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