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Construction Loans in Utah

We can help you build your dream home
If you have been comparing home construction loans, you know there is a lot of information to sift through. At University Federal Credit Union, our goal is to make finding the right loan easy. Our loan specialists can help you build the perfect construction loan. 


Finance Your Dream With a Home Construction Loan 

If you’re ready to start building, we’re ready to help you get financing. UCU offers a variety of construction loans, so you’ll be able to find the right one for you.

couple in front of house construction. build your dream home.One-Time Loan

One-time home construction loans are one of the most streamlined loans. It simply means that one lender is used for both the construction and mortgage of the home. Paperwork only needs to be filled out once, and after the home is finished, the loan then becomes the mortgage.

One-time loans are best for buyers who have a firm construction plan that won’t be changed or if the buyer has a strong, set-in-stone deadline for when the project will be complete.

Two-Step Close Loan

As the name suggests, a two-step close loan has two parts to it. The first is the initial construction loan and the second is the mortgage. Unlike a one-time loan, the mortgage is not included in the initial loan. This offers the benefit of potentially closing on a lower construction loan rate, but also requires the buyer to then re-qualify for the mortgage once the home is finished. 

While the home is being built, only interest will be paid on the loan, which then leaves the entire principal due when the loan term is finished.  This type of loan is suitable for buyers building a custom home, acting as an owner-builder, looking for flexibility in their loan, or those who do not have a solid timeframe for when the home will be completed.

  Lot LoansLot loans are a good option for financing your new home.

Lot loans are the type of financing necessary when purchasing a lot to build on. Once you’ve found the perfect place to build your dream home, you can apply for a lot loan to purchase the property with University Federal Credit Union! 

A common misconception is that lot loans are the same as construction loans, but while they’re both necessary to build your dream home, the biggest difference is that the lot loan pays for the actual property of where you’re building your home, while a construction loan pays for the building of the home itself.

View More On Lot Loans Here

What are the benefits of a credit union construction loan?

At University Federal Credit Union, we offer Custom Construction Loans so you can find the perfect loan for you. In addition to this customization, we also offer competitive rates, such as: Borrow up to 95% of the future value of your home Interest-only payments during construction Various terms available (6–15 months)

We are also proud to work closely with the State Construction Registry to ensure quality construction management. If you’re ready to find the right construction loan in Utah, UCU is here to help. Apply today and we’ll find the right loan for you!

Apply Today for a construction loan

Have Questions or Need Assistance?

Contact a Mortgage Specialist


Loans subject to credit approval. See current rates and terms. Construction financing will require a minimum down payment of 5%. For example a $100,000 loan approved at 95% of value would require a down payment of $5,000. The minimum payment for a $95,000 loan with a 4.49%, $355.46 for the first 12 months during the interest-only period, and then, approximately, $480.79 after the end of interest-only period. This payment example does not include taxes and insurance. Your actual payment may be higher. The monthly obligation will be determined by the total loan amount at the time of closing and the term and interest rate of the loan.