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Overview
Why get a Construction Loan from HFS?
With a Construction to Permanent Loan you have the ability to lock in your 15 or 30-year loan rate before the construction on your home begins. You can start building with the confidence of knowing how much your payments will be before construction starts.
- Lock in interest rate at the start of construction
- Borrow up to 80% of the appraised value
- Up to 12 months of interest-only payments during construction phase
- Automatically converts to a 15 or 30-year mortgage of your choosing
Additional Info
Get one-on-one help today by contacting the Credit Union and asking for a Loan Officer.
Click here for listing of our Mortgage Loan Originators.
Download the Construction Loan Packet to get started.Review
Konahomeowner
We're loving our new house we built with our HFS construction-to-permanent loan! The information packet laid out exactly what we needed to do. The loan team was very helpful and kept us up-to-date along the way.
SAFE Act Information
On July 28, 2010 the Nation Credit Union Administration (NCUA) and other Federal Agencies published a final rule to implement the federal registration requirements of the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (S.A.F.E. Act). The registration requirements apply to all employees acting in the capacity of a Mortgage Loan Originator (MLO). The S.A.F.E. Act requires all MLOs to register with the Nationwide Mortgage Licensing System and Registry (NMLS). Upon completing this registration, each MLO is provided with a Unique Identifier number from the NMLS. An MLO must provide this Unique Identifier number to each mortgage loan applicant upon request and prior to the employee acting as an MLO.Subject to credit approval. Rate may vary based on loan term and points paid.
Membership with the Credit Union is required and open to all who live, work, worship, attend school, volunteer or participate in associations headquartered on the island of Hawaii. A non-refundable $1.00 fee is required to establish membership. A minimum opening balance of $50.00 is required to open a savings account. -
Reviews
Construction to Permanent Reviews
by KonahomeownerConstruction-to-PermWe're loving our new house we built with our HFS construction- to-permanent loan! The information packet laid out exactly what we needed to do. The loan team was very helpful and kept us up-to-date along the way.
My Review
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Rates & Fees
Rates Effective as of: 04-24-2024
Construction to Permanent
Construction to Permanent Interest Rate Points APR 12 Months interest only payments - converts to 180 or 360 payments Construction Phase: Selected 1st Mortgage rate for permanent phase + 1.5% Based off selected 1st Mortgage rate Based off selected 1st Mortgage rate Effective Date: May 1, 2017
Points based on First Mortgage rate selected for permanent phase. Example: A 30 year mortgage at 360 payments for the permanent phase with an interest rate of 4.50%, would pay 2 points. The constructions phase would then have an interest only rate of 6.00%, which is equal to a margin of 1.5% over the permanent rate of 4.50%.
Subject to credit approval. Rate may vary based on loan term and points paid.
Rates Effective as of: 04-24-20241st Mortgage Rates for Construction to Permanent Loans
FIRST MORTGAGE Interest Rate Points APR Up to 180 months 4.625% 0 Points 4.625% 4.250% 1 Point 4.250% 3.875% 2 Points 4.173% Up to 360 months 5.250% 0 Points 5.250% 4.875% 1 Point 4.963% 4.500% 2 Points 4.673% Effective Date: May 1, 2017
Subject to credit approval. Rate may vary based on loan term and points paid.
Additional Info
Member will be responsible for all expenses incurred to secure the loan. This includes an initial deposit of $800.00 to defray expenses for:
- Appraisal fee(s)
- Residential Mortgage Credit Report(s)
- Inspection fee(s)
- Flood Certification fee(s)
- Other incidental expenses that may be incurred to secure the loan.
Note: Member will pay before final closing, any outstanding expenses exceeding the $800.00 deposit. Member will be refunded any balance of the $800.00 initial deposit at first disbursement, or any balance can be applied to escrow costs.
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Calculator
Calculator
Calculate your monthly payments or see how much you can afford.
Loan Calculator
The Calculator Tools are not guarantees of credit. Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.
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FAQ
Frequently Asked Questions
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Can I buy property and start the construction process at the same time?
The property where the construction is taking place must be in the member’s name for at least one month before starting a Construction Loan. If financing is needed, we suggest a Vacant Land Loan to first get the property in your name. Following this time period you may apply for a Construction to Permanent loan.
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Will the Construction Loan convert to a Mortgage automatically?
Yes. Upon completion we will ensure that your loan is then converted to a 15 or 30-year mortgage.
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How long is the Construction Loan for?
The term for the construction phase is up to 1 year.
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Does the mortgage rate get locked in at the beginning of construction, or when construction is finished?
One of the benefits of our Construction to Permanent Loan is you can lock in your mortgage rate at the beginning of the construction process.
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What does the process look like if I wanted to proceed with a Construction Loan and what kind of documents do I need to submit?
You may visit your nearest HFS office and request a packet or download the documents here. The packet contains the information and documents you’ll need to get started. If you have further questions, please call the Credit Union at (808) 930-1400 or set an appointment with a Loan Officer.
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Can I buy property and start the construction process at the same time?