Secu's Construction Loan Options: What You Need To Know

State Employees' Credit Union (SECU) offers a range of mortgage options, including loans for first-time homebuyers, renovation projects, and manufactured homes. While SECU doesn't offer government-backed mortgages, it provides specialty loans and assistance programs with competitive terms and rates. SECU's mortgage process involves pre-approval, commitment confirmation, appraisals, and closing. However, it's important to note that SECU does not currently offer construction loans, but it provides a variety of other mortgage options for purchasing existing homes.

SECU construction loans for first-time home buyers

State Employees' Credit Union (SECU) offers a range of mortgage options for first-time home buyers, including construction loans. While SECU does not offer government-backed loans, it provides specialty loans and assistance programs with similar terms and requirements.

SECU's construction-permanent mortgage allows borrowers to build a new home or renovate an existing one under its 5-year Adjustable Rate Mortgage (ARM) program or through its 15- and 20-year fixed-rate home loan programs. This option includes paying one set of closing costs, which generally range from 5% to 6% of the loan amount for a purchase.

SECU also offers 100% financing for first-time home buyers with good credit who may not have a large down payment. Eligible borrowers can purchase a home with a down payment as low as 1% or $1,000, whichever is less. This option can be combined with a Home Equity Line of Credit (HELOC), allowing borrowers to create sub-accounts with fixed rates, fixed payments, and a fixed payoff schedule.

Additionally, SECU provides the FHLBA Community Partners Product, a grant program offering up to $15,000 in home purchase assistance to current or retired law enforcement officers, educators, healthcare workers, firefighters, first responders, and military members or their spouses. This grant can be combined with the Mortgage Credit Certificate (MCC) program, providing federal income tax credits for 30% of mortgage interest payments up to $2,000 per year.

SECU's lending programs are tailored to the needs of first-time home buyers, offering quick, no-cost, no-obligation pre-qualifications. Their transparent approach to interest rates and fees, along with their participation in multiple first-time buyer assistance programs, makes them a competitive choice for those eligible for membership.

SECU's criteria for construction loans

State Employees' Credit Union (SECU) offers construction loans for building a new home or renovating an existing one under its 5-year ARM program or through its 15- and 20-year fixed-rate home loan programs.

SECU has some of the lowest average mortgage rates and offers generous grants and specialty loans for first-time home buyers. However, it does not offer government-backed loans. SECU's criteria for construction loans include:

• No application or credit report fees.
• No specific Fico score is required to qualify for a loan.
• Income, ability, and willingness to pay are considered.
• Pre-approval is required, but unpaid collections or charge-offs on credit reports are not allowed.
• The home must be placed on property owned by the borrower with deeded access or direct access to a state-maintained road.
• The home must be on a permanent foundation (brick or block) with the tongue, wheels, and axle removed.
• The home must have a pitched roof of either shingles or metal.
• The home must be listed with the tax office as real property.
• The home must be the primary residence of the borrower.
• The origination fee is 1.00% of the loan amount (capped at $2,500).
• The maximum term for a manufactured home loan is 15 years.
• Manufactured homes are eligible as a five-year ARM, fixed-rate mortgage, or through the First Time Homebuyer's Mortgage program.
• Historic homes under the jurisdiction of the NC Historic Preservation Society or a local Historic Preservation Board can finance up to 70% of the purchase price.

SECU's mortgage interest rates

State Employees' Credit Union (SECU) offers both fixed-rate and adjustable-rate mortgages. SECU's fixed-rate mortgages have a variety of loan terms, including 10, 15, 20, or 30-year options for home purchase or refinancing. The interest rate remains the same for the life of the loan.

On the other hand, the interest rates of SECU's adjustable-rate mortgages, also known as variable-rate mortgages, may change periodically based on the corresponding financial index. The interest rate can only be adjusted every five years, with a maximum term of 30 years. The rate cap is 2% every five years or 6% over your initial interest rate during the loan's life.

SECU offers no-cost, no-obligation pre-qualifications to members online, over the phone, or in-person at a local branch. To receive a pre-qualification letter, members must consent to a credit check and provide details on income, debt, assets, and residential and employment history.

SECU also offers special mortgage programs, such as financing for manufactured homes and historic homes under the jurisdiction of preservation boards. Additionally, they provide assistance programs for members struggling with mortgage payments and first-time homebuyer grants for eligible professionals, such as educators, healthcare workers, and veterans.

SECU's construction loan appraisal process

State Employees' Credit Union (SECU) offers construction loans as part of its mortgage programs. SECU has some of the lowest average mortgage rates of lenders and provides generous grants and specialty loans for first-time home buyers.

The SECU construction loan appraisal process begins with a pre-qualification letter, for which members must consent to a credit check and provide details on income, debt, assets, and residential and employment history. A pre-qualification letter is typically generated within one business day.

Once pre-qualified, a member can apply for a mortgage in person at a local branch, online, through the SECU Mobile App, or by phone. SECU mortgage specialists will then gather all the required documentation, including income information, a credit check, and an appraisal order.

The appraisal process for construction loans can be complicated because there is no existing structure to evaluate. The appraisal is crucial in determining the loan amount and is based on the planned home's features and comparable properties. The appraiser must follow set rules when appraising a property, and their opinion on the property's value carries significant weight in the loan approval process.

The borrower is responsible for paying the appraisal costs, which are included in the closing costs. Closing costs also include an origination fee, capped at $2,500, and are based on the mortgage loan type and amount.

SECU's construction loan application process

State Employees' Credit Union (SECU) offers construction-permanent mortgages for building a new home or renovating an existing home. This can be done under the 5-year ARM program or through its 15- and 20-year fixed-rate home loan programs.

To apply for a construction loan with SECU, you must first become a member of the credit union. Membership eligibility is limited to a handful of states. Once you are a member, you can start the loan application process.

The first step is to get pre-qualified for a mortgage. To receive a pre-qualification letter, you must consent to a credit check and provide details on income, debt, assets, residential history, and employment history. After submitting the application for pre-qualification, you will typically receive a pre-qualification letter within one business day.

After pre-qualification, you can start the full loan application process. SECU offers an online application form, where you can choose the home loan type and submit your application. SECU has no application or credit report fees, and it is transparent about the interest rates and fees it charges.

SECU also offers borrower assistance programs, such as the SECU Mortgage Assistance Program, which helps members struggling with their mortgage payments by offering options like temporarily modifying the payment amount or modifying the loan terms.

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