Home Construction Loans
At Listerhill Credit Union, you can secure a low-interest home construction loan to cover your construction costs as you prepare to turn your dream home into a reality.
- Competitive, low-interest rate
- Flexible interest-only loan terms of 12 months
Get up to 100% financing on select mortgage products.
Consult with one of our friendly loan officers about a payback term that fits your goals.
Conveniently pay off your loan through Online or Mobile Banking, automatic payments, or your local branch.
Get into a home with a low adjustable rate or at a fixed rate set by the market.
Build the home (or addition) of your dreams.
Don't have the cash to put down? Qualify for a low (sometimes no) down payment with FHA, USDA, or VA mortgage loans.
Enjoy the perk of no Maintenance Fee with your Listerhill membership while your Listerhill loan is open or has been open within the last 12 months.
Construction Loan
| Loan Type | APR as low as (%) | Maximum Term |
|---|---|---|
| Construction Loan | 8.99% | 12 months |
* All rates and terms are subject to change without notice.
All loans and credit cards subject to credit approval; Actual rate will be determined by the credit worthiness of the borrower. Other restrictions may apply. Rates are subject to change without notice. Equal Housing Lender.
When qualifying for a home construction loan, we will take a look at your financial background to determine whether you have the profile to support qualifying for a loan.
A licensed builder: You will need a licensed builder with a reputation for building homes that meet all requirements.
Only will lend 80% of the appraised value of the home being built: Since there’s more risk involved in getting a home construction loan, you will only receive up to 80% of the appraised value for the loan.
Home details: Your lender will also want to view the details around your home, including floor plans and materials. Unique properties such as log cabins & barndominiums are looked at on a case by case basis and typically will require a down payment and excellent credit.
Debt to income ratio: We will review your debt to income ratio (DTI) to ensure you don’t have more debt than your income can manage. A recommended DTI, including your mortgage payment, is no more than 43%.
Steady income: Whether you’re self-employed or have a W2 job, we want to ensure that you have a stable work history showcasing your likelihood of being able to afford your home now and in the future. Two years of consistent employment are typically required to qualify for a home loan.
Credit history: Your credit score is a significant indicator of your financial responsibility. We will review your credit history and credit score to determine whether you have the background that showcases your ability to manage mortgage payments.
Ultimately we will take a look at your full profile and speak with you directly if needed to help you qualify for a home construction loan.
Frequently Asked Questions
-
What is a Construction Loan? A home construction loan provides you with financing to build your dream home.
With terms up to 12 months, this short-term loan covers your costs, including land, contractor labor, building materials, and more, until your home receives an occupancy certificate.
Once your home is ready to move in, you will then secure a traditional home mortgage.
-
What does Interest-Only Mean? With an interest-only loan, you are only responsible for paying the interest on the amount you draw from the construction loan each month.
Here’s an example.
If you draw $15,000 in January, you pay 4.99% on $15,000
If you draw an additional $25,000 in February, you pay 4.99% on $40,000 ($15K from January + $25K from February)
-
Does it matter who your mortgage is with? Yes because choosing the right lender for your home loan or refinance can lead to a better transaction overall. This is especially important if you are a first time homebuyer or attempting to qualify under special circumstances.
-
Why choose Listerhill for my mortgage? At Listerhill, our focus is on “people helping people.” When you purchase a home, we want to offer you the support you need from application to closing.
As a nonprofit cooperative owned and operated by its members, you own an equal “share” in Listerhill and vote in elections for the Board of Directors and Supervisory Committee. That means your voice is always heard, and in turn, our actions reflect your needs and desires.
Our mortgage rates, terms, and policies will always reflect your needs in securing the best credit union mortgage loan in Alabama.
-
Is a credit union better for mortgages? Securing a mortgage through a credit union is preferable for many seeking to purchase a new home or refinance. Credit unions often offer more competitive mortgage rates in Alabama and are more flexible with their terms and conditions.
Listerhill has consistently been rated in the top tier for overall satisfaction by our members. While we hope you find the information you need online, we'd be happy to talk with you about questions you may have. Call us at (256) 383-9204 or 1-800-239-6033 for friendly, local assistance. Or even stop by one of our branches for personal service.
Answer a few questions and we will find a solution that works for you. It only takes a few seconds.