Construction Loans Reading, PA
Bellco Federal Credit Union in Reading, PA offers a variety of options to meet your home financing needs, including construction loans. We can help you go from empty lot, to construction, to mortgage … all with the people you know and trust.
It has been nearly 80 years since Bell Telephone Credit Union was formed by employees in 1938. Today, Bellco Federal Credit Union remains a member-owned, not-for-profit federal credit union, and continues to offer unique financial products and services to individuals and small businesses in Berks County, PA.
We offer competitively low rates for home purchase, refinance, or construction, and have a number of home financing programs available.
Who Can Join?
You are eligible to join Bellco FCU if:
You live, work, worship, or go to school in Berks County, PA
You are in the immediate family (spouse, parents, children, siblings, grandparents) of a Bellco FCU member, no matter where you live
By opening a primary savings account with as little as $5 and following a few simple steps, you can become a member. And, once you join Bellco FCU, you will remain a member for life, regardless of where you live or work.
Two Types of Construction Loans
If you are planning to build a new home, you’ll need a construction loan. There are two main types of home construction loans.
Construction-to-permanent loan: Funds are disbursed from the construction loan to pay your contractor while your home is being built, and you pay interest-only payments during this time. When you move in, the lender converts the loan balance into a permanent mortgage.
When construction is complete and a certificate of occupancy has been issued, the loan is converted and you begin to make regular mortgage payments based on the permanent loan interest rate and the loan term you selected.
This is two loans in one with a single loan closing, which reduces the fees you pay. However, lenders generally require a down payment of at least 20 percent of the expected amount of the permanent mortgage.
Stand-alone construction loan: Your first loan pays only for the construction of your home. When it's time to move in, you must get a mortgage to pay off the construction debt. This is two separate loans.
The drawback of a stand-alone construction loan is that you will be paying for two closings and two sets of fees, once on the construction loan and then on the permanent mortgage. However, it may be worthwhile if you own a home and won't have much cash for a down payment until your new home is built and the other home sells.
Bellco FCU offers affordable construction loans and flexible terms. Loan decisions, processing, and draws are all done in Berks County, PA. We’ll work closely with you during the entire process to help you save time and money.
To learn more about construction loans from Bellco FCU in Reading, PA, contact us today. We are dedicated to helping our members and their families build new homes and better lives!