homeowners and a contractor inspecting the ceiling of their home

Build Your Dream House With a Home Construction Loan

Flexible land loans and new home construction loans, designed for your needs.
Get Started

Financing Your Home, Made Simple

Building a home from the ground up is exciting, but figuring out the financing can be overwhelming. We’re here to help. Whether you need a loan for land, construction or both, Service Credit Union offers flexible options with competitive rates and expert guidance. Get pre-qualified today and start building with confidence.

How Construction Loans Work

At Service CU, we offer specialized loans for new home construction that function differently from traditional mortgage loans.

During the construction period, you’ll typically only make interest payments while the loan funds are disbursed to contractors and subcontractors in regular installments. These payments are referred to as “draws” since you’re drawing on the loan funds to pay for the construction costs as they arise.

  • Draw # 1
    Site work, Foundation, Framing
  • Draw # 2
    Shingles, Windows, Siding
  • Draw # 3
    Electrical, Plumbing, HVAC Rough in
  • Draw # 4
    Insulation, Sheetrock, Flooring, Trim
  • Draw # 5
    Paint, Fixtures, Appliances 

Find the Right New Construction Loan for You

Compare our home financing solutions and choose your best fit.

Land Loan

  • Finance the land where you plan to build.
  • Suitable for primary residences or second homes.**
  • Competitive rates with up to 80% financing.*
Get Started

Home Construction Loan

  • A single-close loan for land purchase and home construction.
  • Interest-only payments during the building phase.
  • Converts to a standard mortgage upon completion.
Get Started

Why Choose Service Credit Union?

Home financing should be simple. Here’s how we make it easier for you.
Expert Support

Expert Support

Personalized guidance from home loan specialists.
Contact a Loan Specialist
Flexible Financing

Flexible Financing

Options tailored to your timeline and budget.
Get Started
Streamlined Process

Streamlined Process

Fast approvals and a seamless closing experience.
Get Started
Member-First Benefits

Member-First Benefits

Competitive rates and exclusive credit union perks.**
Check Current Rates

Home Construction Loan FAQs

Find answers to common questions about our land and construction loans.

Can I use a land loan for a second home?
Yes! Our land loans can be used for both primary and secondary residences.
How does a home construction loan work?
Our single-close construction loan covers both land purchase and building costs. You’ll make interest-only payments during construction, and the loan will convert to a traditional mortgage once your home is complete.
*The displayed rates for conventional loans assume a loan amount of $500,000 for a single-family, owner-occupied purchase transaction with a down payment of 40% and a credit score of 740 or higher. VA rates assume a loan amount of $500,000 and no down payment. Conventional jumbo loans assume a loan amount of $806,500 and a 40% down payment. VA jumbo assumes a loan amount of $806,500 with no down payment. Payment examples can be obtained by clicking the calculate payments button above and do not include taxes or insurance premiums. Payment obligation will be higher.

**Terms and conditions apply. Land loan subject to credit approval based on creditworthiness.