Bellco FCU in Wyomissing, PA offers affordable construction loans with flexible terms. Apply today and start building your dream home sooner than expected!
Bellco FCU is a member-owned, not-for-profit federal credit union that caters exclusively to you and your needs and offers a variety of affordable financial services. Our trusted and experienced professionals genuinely listen and offer solutions with the compassion of a true neighbor.
About Construction Loans
Most people can’t afford to pay up-front for the cost of building a home, but you may be eligible for a special type of loan called a construction loan. There are generally two different types of home construction loans.
One-Time Closing Loan: Also known as a construction-to-permanent loan, this type of loan automatically converts to a standard mortgage once the home construction is finished. The lender disburses funds from the construction loan to pay your contractor while the home is being built, and you pay interest-only payments during this time.
When construction is complete and a certificate of occupancy has been issued, the lender converts the loan balance into a permanent mortgage. You will then make regular mortgage payments based on the permanent loan interest rate and the loan term you selected.
This is two loans in one with one-time 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.
Construction-only loan: This is a short-term loan that is just for the construction of the home. These loans usually range from six to 12 months in length. You pay only interest during construction, but the entire principal is due at the end of the loan term.
When you’re ready to move in, you'll have to apply for a mortgage loan. You can apply for the mortgage with the same lender or find another lender, but this is two separate loans and you will be paying for two closings and two sets of fees, once on the construction loan and then on the permanent mortgage.
Whether you choose a construction-only loan or a one-time closing loan will depend on your personal preference and your financial situation. If you prefer the peace of mind that comes with a loan that will eventually convert into a permanent mortgage, then the one-time closing construction loan may be your best option.
Bellco FCU’s locally-knowledgeable loan advisors will be happy to discuss your goals and help you establish an affordable construction loan that meets your needs.
Are You Eligible to Join Bellco FCU?
Joining Bellco FCU is a simple process; the investment is small and the rewards are huge. You are eligible to join 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. Once you join Bellco FCU, you are welcome to remain a member for life, regardless of where you live or work.
Get more information about construction loans and other mortgage options in Wyomissing, PA, from Bellco FCU.