Genisys Construction Draw Loan Program

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 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.

Enjoy These Benefits for Peace of Mind.

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.

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Builder Registration

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

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Construction Loan FAQs

What is a new construction draw loan?

New construction loans are a type of loan that specializes in paying for the construction of a new home. Prospective home buyers take out these loans to cover the cost of the construction project, either after the land itself has been paid for previously or including the land in the construction of the project.

These loans are different from a regular mortgage, in that mortgages only apply to homes that have already been constructed and are ready to be occupied. The construction loan covers the cost of building the home, and is paid out over time as the work is completed.

How does a construction draw loan work?

Construction loans are more short-term than other types of home loans, and are focused on paying for the work and materials needed to either build a new home or perform extensive renovations to an existing home.

After the initial loan is applied for, the funds are disbursed in five to six draws over a period of 12 months, as work on the home progresses. These funds can be used to pay for the ongoing work and materials, and interest is only charged on the funds you draw out until the construction is completed.

Our credit union construction loans are available as both Fixed Rate and Adjustable Rate loans depending on your needs. Your payments are calculated using simple interest compounded daily and only on the amount of funds drawn, and based on your interest rate at the time of closing.

Do you need to own the land to get a construction loan?

No. Construction loans can be done on property you already own or a lot owned by the builder that the build will be completed on. Whether or not the property is paid in full or is still under a mortgage may factor into different aspects of your construction loan such as interest rate, and you may be able to use your land as equity for the loan as needed.

What is a single close construction loan?

Single close construction loans are a type of construction loan that can finance the entire process of building and moving into a new home, all with one single closing cost (hence the term “single close”). These loans can help you pay for the property as well as the construction of the home itself, and will convert to a fully amortizing mortgage once the construction is complete and you’re ready to move in.

The largest benefit of this approach is that, once your home is completed, you don’t have to re-qualify for your loan or pay any additional closing costs before the loan becomes a standard mortgage. This can help save you a lot of time and money compared to managing several individual loans to pay for the various aspects of a new home construction project.

When can you move in with a single close construction loan?

You’re able to move into your new home as soon as the construction is completed. Once your final inspections are completed and a certificate of occupancy has been issued for your home by the necessary local authorities, your single close loan typically becomes an amortized mortgage within 60 days of moving in, and repayment begins at that time depending on both the cost of the construction and the cost of the lot it was built on.

How can I get a construction loan?

Getting a credit union construction loan is easy with Genisys! Simply apply today using our online mortgage application, visit one of our branch locations, or call (248) 745-3353 to begin reviewing your current plans and finding the construction loan that works best for you.