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Construction Loan

Home Loan Construction Loan

Planning to build your ideal home? Work with your builder to fine-tune the plans, pick the colors, and trims - we'll help with the financing. MSUFCU Construction Loan allows up to five draws and interest only payments during the draw period (up to 12 months from the loan origination date).

  • View current Rates 
  • Fixed or variable interest rate with 10, 15, 20, 25, or 30-year terms
  • 10% down payment required, less any equity in a borrower-owned lot
  • Private Mortgage Insurance required for loans higher than 80% loan-to-value
  • Loan amounts up to $4,000,000
  • Construction loans are available in Michigan and Illinois.

To apply, click the Apply Now button below or contact the Mortgage Department directly at 517-333-2424.

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Affiliated Moves

Earn Cash-Back Rewards on the purchase or sale of your home with Affiliated Moves

Apply in the Mobile App

On-the-go looking at houses? With just a few taps of your finger, you can apply for a mortgage from anywhere with our mobile app.

As Low as 10% Down
Build your dream home with as little 10% down.
Streamline Refinance
If you have an existing MSUFCU mortgage and are looking to lower your rate, and possibly shorten the term of your loan, a Streamline Refinance may suit your needs.

Frequently Asked Questions

The difference between a fixed rate and an adjustable rate mortgage is that, for fixed rates the interest rate is set when you take out the loan and will not change. With an adjustable rate mortgage, the interest rate may go up or down.

With our Conventional Fixed-Rate Mortgage you can select from 10, 15, 20, 25 and 30-year terms with a fixed rate for the length of the loan. A down payment of at least 3% is required.

With our Adjustable-Rate Mortgage your home loan will be at a lower rate for the first 3 to 5 years. Adjustable-Rate Mortgages are perfect for short-term home ownership, large payments towards the loan in the first few years, or for members simply looking to save money with a lower fixed rate for the first 3 to 5 years. Select from 7-1, 5-1, 3-1, and 5-5 ARMs for a 30-year term. The monthly payments are based on a 30-year amortization, and can change throughout the life of the loan. After the initial term, the interest rate adjusts higher or lower based on the 1 year US Treasury market. The rate changes are limited to an increase or decrease of up to 2% at each annual adjustment, and subject to both a minimum rate (floor) and maximum rate (ceiling) over the life of the loan. Our Mortgage Loan Officers can help you identify which option may be best for you.
 

Private mortgage insurance (PMI) is a type of mortgage insurance required on mortgage loans with less than a 20% down payment. PMI offers borrowers the ability to purchase their dream home without a 20% down payment. The loan type, credit score and loan to value ratio are taken into consideration when calculating the PMI premium, which is paid monthly as a portion of the total mortgage payment. PMI remains on the loan until there is sufficient equity in the home allowing the homeowner to request cancellation. At 78% Loan to Value, PMI is automatically terminated.

Privacy Notice, Consumer Caution and Home Ownership Counseling Notice, Electronic Correspondence Disclosure and Agreement, Mortgage Information, Nationwide Mortgage Licensing Systems IDs, Home Mortgage Disclosure Act Notice, Consumer Handbook on Adjustable-Rate Mortgage, CFPB Your Home Loan Toolkit, Reconsideration of Value

Home loans available for homes in the following states: Michigan, Alabama, Arizona, Colorado, Florida, Georgia, Illinois, Indiana, Kentucky, Minnesota, Missouri, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Virginia, Washington, and Wisconsin. Construction home loans are available in Michigan and Illinois. Rates are based on creditworthiness, loan-to-value (LTV), property type, and other factors associated with your loan application, your rate may be higher.

APR is annual percentage rate, and is subject to change. Your rate will depend on your credit score and the term. The loans subject to credit approval.

 

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