The BECU Construction-to-Permanent Loan is a better way to build your home. 

BECU is proud to offer a Construction-to-Permanent Mortgage that is a competitive advantage to our members, gaining in popularity for several reasons.

BECU will finance up to 70% of the acquisition cost. There will be only one application, one closing, and most importantly, one set of fees. You will pay only the monthly interest payments during the construction phase, and you may be able to finance the monthly interest payments into your loan.

You may choose from several different loan products: 30-year fixed, 5/1 ARM, and for loan amounts greater than $417,000, Jumbo 30-year fixed and a Jumbo 5/1 ARM. In addition, lot equity or items you have paid in advance may be used as credit towards the down payment. You may lock in the interest rate for the full term of the mortgage before construction begins. You can benefit from BECU having an independent reviewer for the home plans and specifications, as well as budget and builder background investigation.

What makes up the Construction Loan costs? 

Land:  You may purchase the land you have under contract at closing with proceeds from the construction loan, or you may already own the land free and clear.

Land Value:  In all transactions the land value is taken from the appraisal. The difference between the land value and the loan to be paid off on the land (if any) will be the equity. The equity will be a credit toward the required down payment, if any.

Soft Costs:  Permit fees, engineering fees, architectural fees, and other costs associated with building your home, but not directly part of the actual construction costs. In some cases, you may have already paid some of the up front costs. If so, these paid items may be considered "equity" if you can document the cost with a bill and a cancelled check.

Hard Costs:  The actual costs of construction covering all materials and labor associated with building the home that are listed on the contract you have entered into with your builder.

Closing Costs:  These are costs associated with the closing of your loan, such as title costs, loan fees, discount fee, inspection fee, and appraisals.

Interest Reserve:  You may qualify to establish an interest reserve account to pay the estimate interest cost during the construction phase of your home. This would eliminate you have to make any out-of-pocket payments during the construction phase.

Contingency Reserve:  This reserve account is created to cover any unforeseen cost overruns in the construction of your home. An additional 10% of the hard cost will be established in a Contingency Account. These are the last funds to be released when the home construction is completed after receiving a final inspection both by the appraiser and the county official.

Sounds great! How do we begin?

Members (or applicants who are eligible for BECU membership) may apply online for our construction-to-permanent loan programs. 

Loans are subject to credit and underwriting approval.