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Build A New Custom Home This Year, Here’s How


If you think building a brand new home is too hard and expensive, think again! With an Owner/ Builder Construction Loan from Hawaii Central Federal Credit Union (HCFCU), building your dream home from the ground up just became possible. This innovative loan program was created specifically for those looking at building a new home or undertaking a major home remodeling.

Here is a general overview of how the Owner / Builder Construction Loan process works:

Application & Appraisal Process

The appraisal value for a Construction Loan is based on the completed home value, so when applying for this type of loan, an appraiser will review your estimated construction costs, the plans for your project and other specifications to determine your approved loan amount.

Disbursement Schedule

After your loan is approved, a disbursement schedule is made to detail the varying amounts of funding that will be disbursed throughout each phase of construction. Each Construction Loan is customized and a disbursement schedule helps keep your project on track and within budget.

Construction Begins

During the construction period, interest-only payments are due. After each phase is complete, an appraiser will visit your site before the next draw of funds is released.

Construction Completed

Once construction on your new home is complete, a final appraisal will be done to assess the value of your home. You will then be able to refinance your Construction Loan into a permanent mortgage.

In 2013, Hawaii Central Federal Credit Union financed over $10 million in Construction Loans and their experienced Home Loan Officers have helped many families build their custom homes from start to finish. All Owner/Builder Construction Loans are processed and funded locally, which means that funds are made available to you in a timely manner to help get your construction started promptly.

To find out if an Owner /Builder Construction Loan is the right fit for your building project, call 536-3677 or visit a Home Loan Officer at 681 S. King Street.

Federally insured by NCUA

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