Building a New House - Hero

Land and Construction Loans

Your land awaits.

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Let's realize your vision

If you want to buy land today and build now or in the future you can take out land and construction loans from VSECU.


  • Arrows

    Adjustable rates

    We offer an adjustable rate loan with a 15-year term for the purchase and finance of your lot or land.

  • Calendar

    Apply any time

    Already started construction? That’s okay. You can choose to apply at any time in the construction process.

  • Wrench

    Added flexibility

    Select your own general contractor to oversee your construction. A cost overrun, of up to 20%, will be applied to construction costs.

Estimate your monthly payment

Enter the amount you wish to borrow for your construction project or to purchase land, then calculate your estimated monthly payment.

Calculated payments shown are for estimation purposes only. Actual loan payment amount and interest rate will be disclosed at loan closing and may differ slightly.

Process & requirements

When you purchase

  • 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.
St. Johnsbury Land - Long Form Txt

When you’re ready to start building

  • You will need to hire a general contractor. Professionals are required. You cannot act as the general contractor for your own project.
  • Your down payment will go into your project prior to any loan disbursements.
Construction Site Table - Long Form Txt

While you build

  • Wastewater system must be designed by a state-registered, professional engineer.
  • Inspections will be made during construction by an appraiser.
Two People Working Building a New House - Long Form Txt

Upon completion

  • Construction funds are disbursed to cover land and construction costs upon completion of work with a 1-year, fixed-rate loan.
  • After the construction loan period is completed, we can refinance the construction loan into one of our traditional mortgage loans.
House with Fence - Long Form Txt

Apply for a Land and Construction Loan

In most cases, qualified applicants who apply online receive instant pre-approval.

Apply online
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– Payment examples do not include amounts for taxes and insurance premiums and actual payment obligation may be greater than illustrated. APR = annual percentage rate.
– The land loan is an adjustable-rate mortgage and may increase after the original fixed rate period. Variable interest rate may adjust 2% annually after the fixed rate period with a 6% lifetime cap and impact the monthly payment. Adjustable-rate mortgage payment example: The land loan is a variable rate loan; interest rates and payments may increase after the original fixed-rate period. A loan for $100,000 at a 6.75% initial interest rate and APR of 6.61% will have the following monthly payment: 36 payments of $884.91 at an interest rate of 6.75%, 143 payments of $811.74 at an interest rate of 5.125%, and 1 payment of $812.57 at an interest rate of 5.125%.
– The construction loan APR assumes paying 1 point equal to one percent of the loan amount. The monthly payment is based on interest only on the amount drawn and a balloon payment due for the entire loan balance at the term maturity. APR = annual percentage rate. Fixed rate mortgage payment example: A fixed rate loan of $100,000 for 1 year at a 5.75% interest and an APR of 8.67% is a $239.58 monthly payment.