Land and Construction Loans

If you want to buy land today, and build now or in the future, you can take out a Vermont or New Hampshire land and construction loan from VSECU to purchase your land. The land or lot must pass a perc test, and cannot exceed 25 acres. If you choose to wait and build later, you will pay monthly mortgage payments on the land with a fixed monthly payment for three years and then the rate may adjust annually thereafter.

When you’re ready to start building, you will need to hire a general contractor and provide us with a copy of an estimated appraisal. Your down payment will go into your project prior to any loan disbursements. After the construction loan period is completed we can refinance your loan into one of our traditional mortgage loans.


FEATURES

ADJUSTABLE RATE

Purchase and finance your lot or land with an adjustable rate loan.

APPLY ANY TIME

You can choose to apply at any time in the construction process.

YOUR CHOICES

Select your own general contractor to oversee your construction.

DISBURSED AT END

Construction funds are dispersed upon completion of work.

5% OVERRUN

We automatically add an overrun cost of 5% to construction costs.

INSPECTORS

Sewage must be designed by a state-registered, professional engineer.

PHYSICAL INSPECTIONS

Up to 6 inspections will be made during construction by an appraiser.

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PROFESSIONALS REQ.

You cannot act as the general contractor for your own project.

RATES

Type Rate Points APR Max LTV Term (years) Monthly Payment
(per $1,000 borrowed)
Land – 3 YR ARM 2/6 Cap 6.750% 1.00 6.01% 80% 15 $8.85
Construction – Fixed Rate 5.750% 1.00 8.67% 80% 1 Interest only on amount drawn; balloon payment at maturity

APR = Annual Percentage Rate. Payment information does not include amounts for taxes and insurance premiums – if applicable, actual payment obligation will be greater. Calculated payments shown are for estimation purposes only. Actual loan payment amount will be disclosed at loan closing and may differ slightly. For the 3 Year ARM Loan: Interest rates and payments may increase after consummation. After the initial fixed rate period, your interest rate can change annually and any change will impact your monthly payment.



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You can apply online in our Mortgage Center for your mortgage or mortgage product. In most cases, qualified applicants receive instant pre-approval. In our Mortgage Center you’ll be able to read about our Mortgage Originators, access additional resources and view all our featured rates.