Discover the Benefits of an Auto Loan with OFCU
One-Time Closing
Enjoy the convenience of a single closing that covers both the construction phase and your permanent mortgage.
Interest-Only Payments During Construction
Keep costs manageable with interest-only payments throughout the 12-month construction period.
Flexible Financing Options
Finance up to 95% loan-to-value with private mortgage insurance, giving you more opportunity to build your dream home.
Construction Loan
OFCU construction loans make it easy to finance the home you’ve been planning. Designed with flexible terms and expert guidance, these loans help you manage costs during construction and transition seamlessly to a permanent mortgage once your project is complete.
Features:
- One-Time Closing – Covers both construction and permanent mortgage.
- Land Purchase Option – Include land costs in your loan if needed.
- Draw Schedule Flexibility – Funds released in stages as construction progresses.
- Interest-Only Payments – Pay interest only during the 12-month construction period.
- High Loan-to-Value – Finance up to 95% with private mortgage insurance.
- Local Servicing & Guidance – Personalized support from OFCU and CUSO Home Lending.
Get a Construction Loan in 3 Easy Steps!
Step
1 |
Apply for a Construction Loan
Apply online, by phone, or visit a branch to get started on your new home project. |
Step
2 |
Loan Approval
Our lending team will review your application and provide expert guidance through each stage. |
Step
3 |
Build & Move In
Interest-only payments during construction, converting to a standard mortgage when complete. |
★★★★★
“As always, friendly and professional. They make you feel like you're part of a family.”
- Savia S., Norway, ME
Construction Loan FAQ
What is a construction loan, and how does it work?
A construction loan is a short-term loan that provides funding for building a new home or making major renovations. Unlike a traditional mortgage, funds are released in stages, called “draws”, as construction progresses. You typically pay interest only on the amount disbursed until the project is complete, at which point the loan is converted into a permanent mortgage.
What can I use a construction loan for?
You can use a construction loan to build a new primary residence, whether it’s stick-built, modular, or manufactured. You can also use it to complete a home that’s under construction or make improvements based on a “to be completed” value.
Do I need to own the land before applying?
No, you don’t need to own land before applying. The purchase of land can be included in your construction loan. If you already own land, the equity may count toward your contribution.
What happens when construction is finished?
Once construction is complete, your loan automatically converts to a principal-and-interest payment schedule. You may also set up an escrow account for property taxes and homeowners' insurance.
Can I act as my own contractor?
No, we require that you work with a licensed general contractor. Acting as your own contractor is not permitted.
Do I need to be a member to apply?
Yes, membership with OFCU is required to apply for a construction loan.
Do I qualify for membership?
Membership is open to anyone who lives, works, worships, or goes to school in these Maine counties: Androscoggin, Cumberland, Franklin, Kennebec, Knox, Lincoln, Oxford, Sagadahoc, Somerset, and York. You're also eligible if you're an immediate family member or share a residence with someone who is already an OFCU member.
Have a Question? Give Us a Call
More Ways to Borrow
Home Improvement Loans
Planning smaller updates or quick renovations? Our Home Improvement Loans offer the flexibility you need, without using your home as collateral.
Personal Loans
From consolidating debt to covering the unexpected or making major purchases, our purchase, our personal loans can help you quickly get the funds you need.
Home Equity & HELOC
Whether it's a dream vacation, funding education, renovating your kitchen, or consolidating high-interest debt, accessing your home's equity makes almost any goal achievable.
*Loan must remain open for three years. Estimated closing costs $600. Membership eligibility is required, included $5 minimum share account balance. Additional disclosures will be sent to you upon application submission. Property insurance required. Flood insurance required where applicable. **Consult your tax advisor about the deductibility of interest.
Oxford Federal Credit Union is a full-service financial institution serving members in Androscoggin, Cumberland, Franklin, Kennebec, Knox, Lincoln, Oxford, Sagadahoc, Somerset and York counties in Maine.