If finding the right home in the current purchase market has been a challenge, there may be other options to consider. Rather than toiling through the current available inventory, you could build a new home or renovate your current one to suit your needs with the help of a construction loan! Today on the blog, we’ll look more deeply at construction loans and why choosing one may be a good option for you.

What is a construction loan?
A construction loan is a short-term loan that finances the building or renovation of a home. Once the construction is complete, the loan can then be paid off directly or converted into a mortgage. It offers flexibility uncommon in many other forms of loans, including the availability of various terms and flexible draws and disbursements.

Start from scratch.
If you haven’t been able to find a home on the market that matches your list of must-have features, you may want to consider starting from scratch. If you have a vision in mind for how your new home should look—inside and out—a construction loan may be a good fit.

Renovate your current space.
If building a new structure from the ground up isn’t an option and you already have your own home, a construction loan may be a smart option. This will enable you to make renovations and repairs that tailor your home to suit your specific needs.

A Construction Loan from DCCU provides the flexible financing you need while you build a new home or renovate your current one. Available features include up to 80% LTV financing, various terms, interest-only payments during construction, and more! If finding a home is more challenging than expected, a DCCU Construction Loan may be worth considering. Plus, our Mortgage team is ready to help guide you through the process from start to finish! Please visit our Construction Loans page to learn more. 

This article is for general information only and not intended to provide specific advice or recommendations for any individual. 

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