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Construction-to-Permanent Loans

Build your dream home with our flexible construction loan options

At SCCU, our loans are construction-to-permanent, meaning our members go through the application and closing process one time only – one set of documents, one set of closing costs. At key points throughout the building process, we draw funds from your loan to pay your builder. When construction is complete, we’ll work with you to convert to the permanent loan that best fits your needs.

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Product Features

Terms & Fees

Up to 30 Years

Application Fees


Pre-payment Penalties


Intangible Tax


Origination Fee

$1,100 plus .25% of loan amount

Available With

Select Adjustable-Rate Purchase Loans; No Closing Costs; Jumbo

Construction-to-Permanent Loan Rates

Effective Date: June 17, 2024
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Term Rate "As Low As" APR* "As Low As" Example Loan Amount Example Monthly Payment
10 Years 6.625% 6.907% $200,000 $2,283.70
15 Years 6.750% 6.951% $200,000 $1,769.82
15 Years Jumbo 6.875% 6.958% $750,000 $6,688.91
20 Years 7.250% 7.415% $200,000 $1,580.75
30 Years 7.250% 7.377% $200,000 $1,364.35
30 Years Jumbo 7.375% 7.428% $750,000 $5,180.06

Rates based on creditworthiness. SCCU construction loans are construction-to-permanent loans, with a 12-month construction period. Once construction is complete, final inspection has cleared, and certificate of occupancy (CO) has been received, the loan automatically converts from construction to the permanent loan that the member selected prior to beginning construction. If construction extends past the 12-month initial period, the rate lock will expire and the rate will be reset at the higher of current rate or the initial lock-in rate. SCCU may agree to make an exception and extend the construction phase of the loan. Any such extension may result in changes in to the rate, payment amounts, and closing costs.

During construction phase, SCCU makes payments to the builder at certain key points during construction. During this period, member loan payments are interest-only, based on the total amount of money that has been advanced by SCCU to the builder. The payments to the builder are contingent upon passing required inspections. During this phase, the interest-only payments will vary monthly, depending upon the total amount paid to the builder at the time of each payment calculation. Payment examples above are given for the permanent phase of the loan only and do not include the interest-only construction phase payments. At initial closing, SCCU collects $1,400 to cover the costs of inspections and builder disbursement. Any funds remaining after CO is issued will be refunded to the member. If actual disbursement charges are greater than $1,400, the member will not be charged above the initial $1,400.

Jumbo Loans available on loans greater than $726,200.

Taxes and insurance not included, your actual payment obligation will be higher.

Frequently Asked Questions

A construction-to-permanent home loan is a popular option for many homeowners who are building new homes. This special type of loan simplifies new construction financing by combining a construction loan with a standard mortgage. With a construction loan in place, your lender makes payments to the builder in increments as each stage of construction work is completed, often at one-month intervals.

At Space Coast Credit Union, our construction-to-permanent loans make everything easier: You will have just one application, one set of closing costs, and one closing process. And once your new home is completed, your initial loan converts to permanent financing. That means even more options: Choose from an adjustable rate or the fixed rate that works for your budget.

Contact us or request a loan consultation with a Team Member to learn more about our competitive credit union construction-to-permanent home loan rates.

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While many parts of the mortgage loan process are the same with construction loans, there are a few differences. During the construction period, SCCU works with your building contractor to develop a draw schedule, which defines when incremental payments will be made to the contractor to pay for completed milestones in the building process so construction can be completed.

During the construction phase, which typically ranges from six to 12 months, you will make interest-only payments. When construction is completed and your new home passes inspection, a certificate of occupancy will be issued and your home is considered to be livable. At this point, your construction loan converts to your permanent mortgage.

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Construction loan rates are either a fixed-rate or adjustable-rate loan that are slightly higher than other types of mortgage loan rates. At Space Coast Credit Union, our construction loans offer a variety of terms, plus fixed- and adjustable-rate options.

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If the first home you buy is also one that you want to build, there's good news: As long as you meet the specific requirements that any type of buyer must satisfy for a construction loan, you shouldn't be held back by being a first-time buyer.

As with any loan, you will need a certain amount for a down payment, closing costs and other fees; have a good credit score and credit report; and have a history of on-time bill payments. Your debt-to-income ratio will be a factor, as well as the total expected costs to build the home you have planned. You'll also want to make sure that you'll be able to comfortably cover any cost overruns that may occur, since the construction process can hold some surprises as the project progresses.

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When you're purchasing an existing home, you may have your choice of a conventional fixed-rate mortgage, adjustable-rate mortgage and other mortgage products. If you want to borrow money to build a new home on your own land, or purchase a home that will be built in a builder's development, a construction loan will likely have the features you need. Here are some of the differences you'll find when you're looking for a lender for your brand-new home:

  • Depending upon the type of mortgage, a traditional home loan may require five to 20 percent down, while a construction loan may be 20 percent or more. SCCU accepts as little as 10 percent down16 on our construction-to-permanent home loans.
  • Traditional home mortgage loans are typically available at lower interest rates than home construction loans. Construction loans can have more stringent requirements for qualification.
  • Construction loans require the submission of building plans, a contract with your builder, and a detailed estimate of the cost to build the home.
  • A construction loan charges interest only on the amount of the loan, or the outstanding balance, that's used during the construction phase.
  • A construction loan may also include a lot loan that allows you to buy your land at the same time you're borrowing for construction.
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If you're ready to build your dream home, SCCU is here to help! Get started with our fast application process online or by phone. There's no application fee, and our onsite loan underwriters make sure a decision is reached quickly.

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The requirements for a new construction loan are similar to those for any type of loan related to home buying. At SCCU, your lending officer will review your credit score, your debt-to-income ratio, your bill-paying history, and more. Your down payment and closing costs will depend upon the specific loan you are applying for. If you have questions about SCCU's construction loan terms and requirements, please reach out to us and a Team Member will be happy to assist.

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