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Construction Loans
Build your dream home your way with a construction loan

A Dupaco construction loan gives you the flexibility you need as you manage all the things that come with building a house.

How a construction loan works
Your foundation for financing starts here

Building your home has its perks. But unless you have unlimited savings, you’ll likely need to borrow money for the construction phase. Enter Dupaco’s construction loan. Here’s how it works:

What you can borrow

If eligible, you may borrow up to 80% of the construction costs to help cover labor and lot expenses.

Down payment

You’ll need to pay 20% of the construction costs upfront. This may include sweat equity or lot equity if you already purchased your lot.

Access money when you need it

During the first eight months, you may withdraw money when you submit construction invoices and they’re approved. Plan for inspections to show progress.

Delayed repayment

You don’t have to make payments for the first eight months of your loan. Interest accrues on the money you withdraw, and you’ll need to pay the interest at month nine. Loan repayment begins 10 months after you opened your loan.

Adjustable interest rate

After 10 months, we’ll help you transition to a 30-year adjustable-rate mortgage (1/1 ARM). The rate will be fixed for the first year, but could change up to 2% every 12 months after. Hint: Over the life of the loan, your interest rate will stay within 6% of the original rate.

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Frequently asked questions
Have questions? We have answers.

Our team of experts has answers to some of your most commonly asked questions. But if you’d rather talk to a human, you can give us a call at 800-373-7600, ext. 204 or connect with us here.

A construction loan helps you borrow funds to build a new home, while a traditional mortgage allows you to borrow funds to purchase an existing home. With a mortgage, the entire loan amount is paid in one lump sum to help you purchase the home. But with a construction loan, funds are paid out to you in “draws,” or phases, as the project progresses. Each loan comes with its own repayment term and interest rate.

A construction loan gives you the flexibility needed to help you build your dream house. During the first eight months, you can access funds when you need them to cover construction expenses. And you don’t have to start repaying your loan right away. This gives you some breathing room as you manage all the costs that come with building a house.

Interest rates on conventional mortgages and construction loans fluctuate. But in general, interest rates on construction loans tend to be higher than traditional mortgages.

Each situation is unique. And your credit score is just one piece of the puzzle. Lenders will also review your salary, savings, other debts and more to determine eligibility.

When you use a construction loan at Dupaco, you’ll also take out a special insurance policy, known as a builder’s risk insurance policy, while the building is constructed. Once your house is complete, your insurance agent can roll the policy into a regular homeowner’s insurance policy.

Talk with a lender
We're here to help you every step of the way.

Have questions? Ready to apply? Drop us your information below and we’ll be in touch soon, or give us a call at 800-373-7600, ext. 204.

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