Home Construction & New Build Loans - Genisys® Credit Union - Genisys® Credit Union

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Genisys Construction Draw Loan Program

couple looking at their new home being built

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.

Click through the tabs below to learn more about the process.

Construction Loan Basics


Starting the Financing Process


Financing Through the Building Process


Final Stage


Construction Loan Basics

  • Construction loans with payments start as a 12 month interest only loan, based on the construction draws when disbursed. After construction, the loan will automatically convert to the remaining term of the mortgage product you chose at application.
  • There are many Fixed-Rate and Adjustable-Rate (ARM) loan options available, with terms from 10-30 years.
  • Loans with as little as 5% down payment are available.
  • Construction loan proceeds are typically disbursed in 5-6 draws, as work is completed.
  • Interest is only charged on the funds drawn on the loan from the date of disbursement. 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. Payments are always due at the first of each month.


  • $500,000 Purchase transaction with 20% down (=value of land owned by borrower), loan amount of $400,000 at 3.5% interest.
  • We would do 5 draws of $80,000 each.
  • Closing on 3/15

1st draw of $80,000 on 4/15

1st payment would be calculated as follows:
Interest from 4/15-5/16 (billing cycles cut-off on the 16th of the month or the next business day), $80,000 @ 3.5% interest for 32 days is $245.48 ($7.67/day)

Total 1st payment would be $245.48

Due 6/1

2nd draw of $80,000 on 5/16

2nd payment would be calculated as follows:
Interest on (1st draw) $80,000 from 5/17-6/16 (31 days @$7.67/day = 237.77)
Interest on (2nd draw) $80,000 from 5/16-6/16 (32 days @$7.67/day = 245.48)

Total 2nd payment would be $483.25

Due 7/1

  • After the final draw the loan will automatically convert to your selected mortgage product, with full principal, interest, and escrow payments (if applicable).

Starting the Financing Process

Gather all necessary construction documents:


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.

Complete Construction Plans and Specifications

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

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.

Financing Through the Building Process

couple looking at their new home being built

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

  • 1st Draw - Foundation and Backfill
  • 2nd Draw - Rough Framing and Roof
  • 3rd Draw - Rough Mechanicals
  • 4th Draw - Interior & Exterior
  • 5th Draw - Final finish draw

Final Stage

couple with kids opening door and entering home

  • 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 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

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

Click to view current Registered Builders

3D Building Group

Clarkston, MI

A-Better Exterior

Daniel Weiler
Highland, MI

Absolute Construction, LLC

Imlay City, MI

Alpha One Building LLC

David and Nebil Semaan
Rochester Hills, MI

Alpine Construction, LLC

Brian Hefferan
Clinton Township, MI

Benchmark Buiding and Development, LLC

Kevin Collins
Almont, MI

BetterBuilt of Northwest Florida

Troy Smeegle
Niceville, FL

Brumco Building, LLC

Devin Brumley
Casco Township, MI

Call on Him Construction

Kevin Lawrence
Farmington Hills

Carr Custom Homes, Inc

Aaron Carr
Oxford, MI

Centerpoint Building Company

Michael Couch
Dryden, MI

The Cervi Group LLC

Mark Cervi
Casco, MI

Clark Building Co

David Clark
Shelby Township, MI

Classic Remodeling

Chad Panduren
Allenton, MI

Clearview Builders

Eric Konieczny
Rochester Hills, MI

Coomber Construction (Z.B Ventures)

Zac or Danielle Brooks
Edgewater, FL

Creative Custom Builders

Robert Rawa
Waterford, MI

DiLusso Building Company (DBC & Associates)

Damiano DiMercurio
Rochester, MI

Especially Windows and Remodeling

Darin Dell
Highland, MI

Eureka Building Co

Erion Nikolla
Troy, MI

Freund & Associates Building, LLC

Nicholas Freund
Royal Oak, MI

G & G Construction, Inc

Sprice, MI

Hoothoofd Builders

Dorothy Hoothoofd
Akron, MI

Genesis Design Build

Frank Portelli
Linden, MI

Gold Medal Building

Jeffrey D Roberts
Howell, MI

Hamilton Homes of Southeast MI

David Hamilton
Shelby Twp, MI

Hansen Homes LLC

Thomas Hansen
Armada, MI

Huron Manufactured Homes

Roger Hamill
Port Huron, MI

Integral Builders LLC

Jonathan Miller and Joshua Nolt
Clare, MI

Integrity Builders

E. Keith Crumrine
Mayville, MI

J. Radloff Construction

Joshua Radloff
Sandusky, MI

Jensen Homes LLC

Christian Jensen
Beverly Hills, MI

Jeremy Lew & Associates

Jeremy Lew
Northbrook, IL

Joe Stephenson Builders

Joe Stephenson
Clay Twp, MI

Kruger-Thoner Builders

Kent Kruger, Steven Thoner
River Falls, WI

L. Morse Construction Inc

Laverne Morse Jr
Clio, MI

L&M Building Company

Domenic Militello
Shelby Township, MI

Landmark Building & Construction

Mark Higgins
Southgate, MI

Lombardy, LLC

Andrew Heiple

M.D Construction LLC

Mark Delor
Kimball, MI

Martino Home Improvements

Martino Montalto
Madison Heights, MI

Michigan Custom Homes, Inc

Kerry Norwood
Wales, MI

Mike Strope Custom Builder

Mike Strope
Mt. Pleasant, MI

Moda Building of Waterford, LLC

Robert Semaan or Robert Kato
Madison Heights, MI

Nanni Building Company, Inc

Christopher and Karen Nanni
586-784-5045 or 586-531-2389
Allenton, MI

Nestlewood Homes, LLC

Michael Rettler
Metamora, MI

Neumann Building Co LLC

Richard Neumann
Clarkston, MI

Next Modular, LLC

Joel Comino
Goshen, IN

Orchard Construction Inc

Steven Nikkel
Armada, MI

PH Homes

Craig Piasecki
Commerce Twp, MI

Pierson-Gibbs Homes, Inc

Eric Pierson
Columbus Twp, MI

Reschka Design Build, LLC

Alex Reschka
Ferndale, MI

Robert D Williams, Builder, Inc

Bob Williams
Gladwin, MI

Romita Construction Inc

Carlo Romita
Rochester Hills, MI

Royal Stag

William Saputo
Williamsburg, MI

Runyan Bros Construction

Scott, Jared or Evan Ruynan
Howell, MI

S. MacDonald LLC

Scott P MacDonald
Waterford, MI

Scaccia Building Company

David Scaccia
Auburn Hills, MI

Sitto Building and Engineering

Imad S Sitto
West Bloomfield, MI

South Arm Construction

Larry Tumble or Ellis Raatz
East Jordan, MI

Standard Drywall, Inc

James Lafata
Shelby Twp, MI

Steve Messing Carpentry

Steve Messing
Minden City, MI

Stoneridge Homes, Inc

Mark Christie
Clarkston, MI

Sunny Homes, Inc

Gregory Blastic
Howell, MI

Terry Cadarette, Sole Proprietor

Terry Cadarette
Goodrich, MI

Terry Russell, DBA Joseph Douglas LLC

Terry Russell
Clarkston, MI

Thomas Paul, LLC

Thomas Bartlett
Washington Twp, MI

VIP Restoration LLC

Vera and Pjeter Camaj
Clarkston, MI

Vision Design Build, LLC

Tamara Lawson/Sal Vitale
St Clair, MI

Vita Attiva

Paul Whiteman
Fairbault, MN

Don't see your builder?
Have your builder call us at 248-745-3353.

Let's Get Started!

Apply Now

or Call (248) 745-3353

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.


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