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Build the Home of Your Dreams, or Put Down Plans for the Future

Whether you are ready to build a new home now, or looking to acquire land first, we have the right loan for you.

Land Loan

Land Loan

Our land loan product allows borrowers to finance the land on which they will ultimately construct a residential property, whether it’s a primary residence or a second home.**

A graphical illustration of a hand holding a house with a hammer in it

Home Construction Loan

With a single-close construction loan from Service Credit Union, you’ll have the funds you need to purchase land and construct your home all with one loan. The home construction loan offers an interest-only payment for a certain amount of time during the construction of the home.

The Pre-Construction Process

A high-level view of the process from financing your project to breaking ground and beginning your construction.

Home Construction Seal of Approval

Step #1: Secure Financing/ Land – Pre-qualification
Get pre-qualified to know how much you can finance and the costs associated.


Step #2: Design
Work with architect to design your dream home.

Check with a builder

Step #3: Consult with Builder
Finalize numbers and agree to a build cost.


Step #4: Contract
Get pre-qualified to know how much you can finance and the costs associated.

Construction Permits

Step #5: Permits
Obtain approvals from local and state government – Building permits, septic design and approval.


Step #6: Close
Close your loan

Construction worker

Step #7: Build
Break ground and watch the transformation.

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.

Floor Plans

Draw # 1
Site work, Foundation, Framing

Door and Window

Draw # 2
Shingles, Windows, Siding


Draw # 3
Electrical, Plumbing, HVAC Rough in

Insulation and Flooring

Draw # 4
Insulation, Sheetrock, Flooring, Trim

Paint and finishes

Draw # 5
Paint, Fixtures, Appliances 

Mortgage Rates/Home Equity Rates***

Learn more by contacting one of our mortgage specialists today, or get started now.

*Rates shown are Annual Percentage Rate (APR). HELOC promotional rate of 3.99% APR is fixed for the first 12 months. After the promotional period, the rate will vary based on the Wall Street Journal Prime “Prime” rate published on the last business day of the month, 8.25% APR as of 5/4/23. APR may increase after the loan is closed; maximum APR is 17.125%. Minimum line of credit is $25,000. Property insurance is required. During the 10-year draw period a Home Equity Line of Credit with a balance of $25,000 and APR of 3.99% for the first 12 billing cycles will result in 12 interest only payments of $83.13. After the promotional period a balance of $25,000 and variable APR of 8.25% will result in 108 interest only payments of $171.88, followed by 179 payments of $242.54 and one (1) final payment of $240.80 during the repayment period. Payment example does not include taxes and insurance; actual payment obligation will be greater. During draw period minimum payment required is interest only. Closing costs will apply to home equity lines of credit secured by properties that are listed for sale. Properties currently on the market will be subject to credit report, title, recording, settlement, and appraisal fees (approximately $900). Certain costs associated with the transaction will be the members responsibility regardless of property listing status, including but not limited to per diem interest, taxes of any kind, and insurance premiums. Existing Service Credit Union HELOC’s are not eligible for this promotion. An early termination fee of $400 applies if paid off and closed within 36 months of opened. The fee will be waived if refinanced with Service Federal Credit Union if the borrower paid closing costs for the home equity line of credit. Other exclusions may apply, please ask your loan originator for details. Subject to credit worthiness and dwelling requirements. Must be an existing member or eligible for membership. Promotional fixed rate terms are limited to one time use. Promotion runs from 11/03/2022-06/30/23 and is subject to change or be discontinued without notice.

**Service Credit Union will finance up to 80% of land loan. Property must be a buildable lot as verified by a soil test and road frontage

***The displayed rates for conventional loans assume a loan amount of $250,000 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 $250,000 and no down payment.  Conventional jumbo loans assume a loan amount of $726,200 and a 40% down payment. VA jumbo assumes a loan amount of $726,200 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. Appraisal rebate of up to $695 will be applied for purchase loans only. A purchase loan is the financing connected to the purchase of a property involving the transfer of title from seller(s) to buyer(s). Applicant(s) will be required to pay estimated cost of the appraisal up front. Rebate will be applied as a credit at closing towards the total amount paid for the appraisal associated. Credit will not exceed amount paid and cannot be transferred or exchanged for cash equivalent. Subject to change or be discontinued at any time.