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Build Your Own Dream Home From The Ground Up

homes0302_2With the inventory of Oahu’s single family homes for sale at one of its lowest, the competition among buyers is high. This is causing buyers to put in multiple offers with many of today’s single family homes selling for prices above the list price and much faster.

While this can be discouraging for homebuyers, there may be an alternative route to owning your new home. Rather than settling and paying more for a currently listed property, you could use that money towards the construction of a brand new custom home. With Hawaii Central Federal Credit Union’s Owner / Builder Construction Loan, you can do exactly that! This innovative loan program was created specifically for those looking at new home construction and/or major home remodeling.

Here are some frequently asked questions regarding Owner / Builder Construction Loans:

What is an Owner/Builder?

The term “Owner/Builder” refers to a person who is acting as their own general contractor for a home being built on a piece of land that they own. By taking on the role of owner/ builder, you eliminate the need for a building contract with a bonded contractor. This alone can save you thousands of dollars in construction costs. However, owner/builders are required to have some background in construction.

How does an Owner/Builder Construction Loan work?

Owner/Builder Construction Loans are tailored to your building design and property value at the end of construction. The loan officer will need to review your construction plans so they can customize the loan program to fit your specific project.

Every loan is personalized with varying amounts of funding disbursed through each phase of construction. Owner/Builder Construction loans are typically short-term loans with interest only payments during the construction period.

What type of property can an Owner/Builder Construction Loan be used for?

An Owner / Builder Construction Loan can be used for any type of major home construction project, whether it’s building a home from the ground up or adding an extension on your current home. This allows you to open up options you may not have been interested in before, like properties in below average condition, vacant lots or even taking another look at your current home.

Whether you’re looking for your first home or a bigger space to accommodate a growing family, you have more options than you think. In 2013, Hawaii Central Federal Credit Union funded numerous construction projects with more than $10 million in construction loans. Their experienced home loan officers understand the process and obstacles borrowers often face on the way to building their new home.

To find out if an Owner/ Builder Construction Loan is the right fit for you, or for more information, call 536-3677, go to, or visit Hawaii Central Federal Credit Union’s office located at 681 South King Street.

Federally insured by NCUA

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