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Construction Loans

The Genisys Construction Draw Loan makes financing the building or renovating process easy.

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Genisys Construction Draw Loan Program

Are you a Michigan or Minnesota resident looking to build their own new home, or renovate an existing one? The Genisys Construction Lending Program offers multiple products to fit a variety of homeowner needs. For homebuyers who are building a new home or renovating an existing home, we offer an all in one, single close draw construction loan program that works with your builder to provide funds (draws) as your home is being built and then automatically converts to a permanent fully amortizing mortgage, over the remainder of the loan for the product chosen.

No matter what kind of home you want to build, or what renovations you want to do to your current home, Genisys Credit Union can supply the new build & construction financing your family needs. 

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Free Pre-Qualification

A no cost Pre-Qualification to provide to your builder that ensures you can qualify for the amount needed to build and finance your home.

Our Approach is Simple.

How Do Construction Loans Work?

How Do I Apply For A Construction Loan?

Gather all necessary construction documents:

Step One

A fully executed all-inclusive construction contract. Including:

  • Builders company name, address and phone number
  • Borrower’s name(s)
  • Construction property address (must have permanent parcel number and actual street address).
  • Firm contract price
  • Contract price must be for a complete house, and include allowances for well/septic/sewer tap-in fees, etc. and lines to the dwelling.

Step Two

Complete Construction Plans and Specifications

  • Specifications must detail material grades and be accompanied by a cost/allowance breakdown.

Step Three

Work with your chosen Mortgage Consultant to complete the mortgage application and closing process. Typical income and asset documentation will be required.

  • You will be assigned to one of our construction loan specialists to take you through processing, closing, and all the way to completion of construction.
  • Builders risk insurance specific to the mortgaged property will be required at close or prior to completion of construction. This may be supplied by the builder or the homeowner.
  • Important: the title company will file a Notice of Commencement subsequent to your loan closing, if at all possible you should ensure no construction takes place prior to that notice being completed and sent for recording.

The Construction Financing Process

The construction process and therefore the loan draw process typically progresses through 5 general phases described below:

Interior home view

First Draw
First Draw
Foundation & Backfill
Second Draw
Second Draw
Rough Framing & Roof
Third Draw
Third Draw
Rough Mechanicals
Fourth Draw
Fourth Draw
Interior & Exterior
Fifth Draw
Fifth Draw
Final Finish Draw


Final Stage

  • A final inspection will be performed by the original Appraisal Management Company to confirm the property has been completed in accordance with the original plans and specifications, plus any change requests. Further, that the value remains indicative of the value estimated prior to construction.
  • The Builder will provide the Final Sworn Statement to Genisys and/or the title company. Along with any remaining unconditional lien waivers.
  • The title company will provide the final Title policy.
  • We will then request a final homeowners insurance policy.
  • Genisys Credit Union will then disburse the remaining construction loan proceeds to the builder, and convert the loan to your final mortgage loan with principal and interest payments.
  • You will then be responsible to file the Homestead Exemption subsequent to Certificate of Occupancy, if applicable. PRE Homestead Form
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Selecting a Builder

Selecting the right builder is one of the most critical steps in the new construction process. You should look for an experienced builder that understands what your goals and needs are for the project and has the resources to help you get there. Genisys helps in that regard by registering the builder under the Genisys Builder Partner Program.

View Registered Builders

Get Started

How would you like to begin?

Apply Now 

or call us at 248-745-3353

Construction Loan FAQs

What is a new construction draw loan?
How does a construction draw loan work?
Do you need to own the land to get a construction loan?
What is a single close construction loan?
When can you move in with a single close construction loan?
How can I get a construction loan?

 

*Good for 120 days from the date credit is requested. Must be for the same product and terms as your pre-qualification. Purchase agreement required to lock into your final rate.

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