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You’ve picked out the land, come up with the plans and you’re ready to turn your vision into reality. Summit’s here to help!

Count on Summit Credit Union’s lending experts to walk you through your choices and help find your best loan.


Construction Loans

  • Payments are interest-only on funds spent during the construction phase
  • Gives you money to pay the builder during construction, then automatically converts to a regular mortgage when construction is complete
  • You’ll only have one closing for both the construction loan and your mortgage
  • And like every Summit mortgage, your loan will be serviced directly by Summit

Construction loan options:

Summit’s adjustable-rate mortgage (ARM) construction to permanent loans come in four options: 3/1, 5/1, 7/1 or 10/1. Any time after construction is complete, you can opt to refinance and switch to one of our fixed-rate mortgage loans.

View the Daily Rate Sheet for all home loan options, details and disclosures.

Understanding ARM Loans

ARM loans are often described with a two-digit number (for example, 1-1, 3-1, 5-1 and 10-1).

Here’s what those numbers mean:

  • The first number = how many years the initial interest rate will be locked in.
  • The second number = how frequently the loan rate could be adjusted after that period.

So, for a 3-1 loan: The original interest rate would be fixed for the first three years and it could change once each year for the rest of the loan.

How Construction Loans Work

Construction loans have two components

  1. The Draw Period
    • This is the period when actual construction is happening
    • As your project hits various milestones, Summit will conduct a property inspection and release funds based on the construction that has been completed
    • During this time, you’ll only be responsible for interest payments on your loan
  2. The Construction to Permanent Loan Period
    • Starts when construction is complete and Summit has received final inspection documents and a certificate of occupancy
    • At this point, the construction loan transitions into the permanent mortgage loan
    • Payments will reflect the interest rate at the time of your original loan application
    • Your permanent loan will automatically be a Summit Adjustable Rate Mortgage (ARM) loans (3-1, 5-1, 7-1 or 10-1)
    • If you prefer, you can opt to apply for a fixed-rate mortgage loan (once construction is complete)

Construction loans require special documentation and approvals

In addition to the paperwork and documents required for a typical mortgage, Summit will also need to review and approve your builder.

We’ll request additional documentation, which will likely include:

  • Project plans and specifications
  • Construction contract
  • Construction cost breakdown

Your Summit loan officer will provide you with a complete list of required documents and approvals and is happy to answer any questions you might have about the process.


Lot Loans

Find the perfect corner lot to build your dream home?  Get an adjustable-rate lot loan starting with lower monthly payments while you plan out your future home.


Land Loans

Got your eye on wooded acreage or the ideal hunting land? A land loan offers a competitive adjustable-rate term. Use the funds to buy land for recreational use.


Which loan is right for you?

Use our online loan consultant to find the loan option and rate best for you.

Explore Loan Options

Connect With A Mortgage Loan officer
Featured Mortgage Rates
Rates Effective October 1, 2020
Type and Term Rate Annual Percentage Rate

30 Year Fixed

3.000% 3.067%

15 Year Fixed

2.500% 2.621%

7/1 ARM**

3.250% 3.068%


Frequently Asked Questions