One application. One closing. One less thing to worry about.
Firefighters First offers a single-close Adjustable Rate Mortgage (ARM) construction loan for California members ready to build. One application, one approval and one closing covers both the construction phase and your permanent mortgage. When your home is complete, your loan converts automatically with no added closing costs. And if rates drop, RateDrop* may let you lower your rate without paperwork or a new appraisal.
Build your vision with a 7/1 ARM construction loan.
From blueprint to move-in day, our construction loan makes financing your build straightforward. Whether you’re building new, adding on or transforming a space, we’ve got you covered.
From the first blueprint to the final walkthrough, here’s how it works.
A construction loan works differently than a standard mortgage. Here is what to expect at each stage, from the first draw to your permanent mortgage conversion.
Funds are released in stages as you build.
Funds are disbursed in stages as your build progresses. You pay interest only on what has been drawn at any given time, keeping payments manageable throughout the construction phase.
One close covers both phases of your loan.
One application and one closing covers both your construction phase and permanent mortgage with no second approval, no added closing costs and no new credit check when your home is complete.
Loan converts to a permanent mortgage at completion.
Once your home passes inspection, your construction loan converts to a permanent mortgage. No additional paperwork, no new appraisal and no interruption to your move-in timeline.
RateDrop protects you if market rates fall after close.
Your permanent mortgage has an initial fixed rate period. If rates fall after closing, RateDrop may let you lower your rate with no new appraisal, no income documentation and no extra paperwork.
What to expect from blueprint to move-in.
Building a home is a process. Knowing what comes at each stage makes it easier to stay confident and on track from the first conversation to the final walkthrough.
Find your builder.
Choose a licensed, insured builder with a strong track record.
Get your docs ready.
Collect your builder contract, credentials and financial documents.
Apply for your loan.
Our loan consultants guide you through approval and getting started.
Build and move in.
Funds release in stages and your loan converts when you move in.
Start your construction loan with confidence.
Take the first step to understand more about our construction loan. Apply today and move forward with clarity, speed and support at every stage.
Everything you need to know about our construction loan.
What is a single-close construction loan?
A single-close construction loan combines your construction financing and your permanent mortgage into one loan with one closing. You apply once, get approved once and close once. When construction is complete, the loan converts to your permanent mortgage without a second application, additional closing costs or a new credit check.
Is the construction loan only available in California?
Yes. Our construction loan program is currently available to members building in California only. If you are outside California, contact us and we can discuss other home loan options that may fit your situation.
What is the RateDrop program?
RateDrop* is a program that allows eligible members to have their mortgage interest rate lowered to the current market rate after their loan converts to a permanent mortgage, without additional paperwork, a new appraisal or income documentation. Standard eligibility requirements apply. Contact us for full details.
How are funds disbursed during construction?
Rather than receiving a lump sum upfront, construction loan funds are released in stages as each phase of your build is completed. You pay interest only on the amount that has been drawn at any given time, which keeps your costs manageable throughout the build.
What type of mortgage does the loan convert to?
The construction loan converts to an adjustable-rate mortgage once construction is complete. The representative example on this page is based on a 7/1 ARM structure, which means the rate is fixed for the first seven years before it can adjust. Your consultant can walk you through how this works and whether it fits your situation.
What documentation do I need to apply?
You will need a signed contract from your builder with detailed pricing and plans, proof of your builder’s credentials and references, and standard financial documentation including pay stubs, tax returns and income verification. Your Real Estate Loan Consultant will walk you through the full list during your consultation.
Can I use a construction loan if I already own land?
Yes. If you already own your lot, you can use the land equity as part of your construction loan. Contact us to discuss how your existing land factors into the financing.
* Standard underwriting guidelines, fees, terms, and conditions apply to new loan applications. Call for details. Eligibility, no previous loans with the Credit Union that were 30+ days delinquent over the past 12 months. The loan must be owned by the Credit Union. Loans sold to Fannie Mae or Freddie Mac are not eligible. $1,000 fee for loans less than $766,550 and $1,500 for loans greater than $766,550. If we are offering refinancing for the same product at no cost, the modification will be free. Fees cannot be added to the balance of the loan. Your rate will vary based on FICO score. Contingent on individual qualifications. Contact our Mortgage Consultants for more information.
1. Firefighter Insurance Services (#0G87848) is not insured by NCUA.
Representative Example: Construction loan; 7/1 ARM, For a $400,000 loan at 6.5% Rate, 6.772% APR, initial payment $2556.85. First adjustment is after 84 months, to 8.5%, new payment $3,021.44. Second adjustment after 96 months, 10.50% rate, $3,504.71 payment. Third/final adjustment to max rate of 11.50% after 108 months, payment $3,750.24 12. Based on a 12 month construction phase followed by a 29 year amortization period. Taxes and insurance premiums are not included in the payment and that the actual payment obligation may be greater.
APR = Annual Percentage Rate.
ARM = Adjustable-Rate Mortgage.
Construction loans only available in California.
NMLS ID #649058.
Subject to credit approval.