If you’re building your own home, you’ve got enough on your mind without worrying about the construction loan. An interim construction loan is a short term loan, typically 6-9 months in length, and is used to fund the cost of building a home.

Once you are pre-approved for a mortgage with JSC Federal Credit Union Mortgage, you may then apply for the Construction Loan. Harris County and adjacent counties will be the only areas considered for a Construction Loan. During the application process, the Credit Union reviews the contractor’s credentials and all building costs.

After approval, monies are advanced as work is completed. Progress is monitored through the actual construction phase by the Credit Union approved inspector who examines the property prior to the release of funds. The loan is funded in draws, and each draw request will be submitted to the Credit Union. Draws are funded according to a specific “draw schedule”. The Credit Union advances funds as the construction of the home progresses.

You will be billed for interest only on the loan during the building process. The contractor should provide you, the home buyer, with certain disclosures explaining your rights under the construction contract, as well as periodic information regarding the construction progress and funds needed. When the home is complete and all funds for the construction loan are advanced, the construction loan will be refinanced into a permanent mortgage.

Click here for Construction Loan rates.

For more information, please call one of JSC Federal Credit Union’s professional mortgage loan officers at 281-488-7070 or 800-940-0708.

For more information on JSC Federal Credit Union, or to find out how you can join, please call 281.488.7070 or 800.940.0708, or visit any branch office or e-mail.