Construction Loans

LGFCU offers a construction loan to build a primary residence or to fund a major addition to your current home.

• Combine construction and permanent loans into one closing
• Requires turn-key contract with licensed North Carolina contractor
• Two-Year ARMs available with a maximum term of 30 years
• Loans up to 90 percent of the value of building lot plus the builder's contract or the appraised value, whichever is less
• Six months maximum construction phase
• During this construction phase, money is advanced on the loan as the construction work progresses.
• Appraiser inspects the home, completes a schedule for disbursements and funds are advanced upon work completed.
• At the end of the construction phase, money is deposited into an escrow account for future payment of taxes and insurance.
• Loan converts to a permanent loan and payments begin according to the terms and interest rate set at closing.