Construction Loan

Build the home you want with a construction loan from Spirit of Alaska Federal Credit Union. We support construction loans throughout the Fairbanks North Star Borough and several other areas north of the Alaska Range. We'll be there with you every step of the way.

Call us for rates and appointments: 907-459-5974 Fax: 907-459-5980

Construction Loan
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Mini Construction Loans

Buying a fixer-upper? Ready to remodel your existing home?

Spirit of Alaska FCU can help you make it the home of your dreams! We welcome owners who desire to do their own renovations, as well as those who hire a contracting company to take on the project.

Contact our Mortgage Loan Department:

  • Apply for your loan online! Click the Apply Now button above. We will contact you after processing your application.
  • If you have more questions or special circumstances, give us a call to make an appointment with a loan officer and we can go over your options with you in a quick 45 min. appointment.

CONTACT INFO

Phone: 907-459-5974

Fax: 907-459-5980

Email: homeloans@spiritofak.com

We will work with you to:

  • Purchase a foreclosure or non-conforming home
  • Do major renovations to an existing home
  • Borrow funds to complete a partially finished home.

Our Mortgage Department offers:

  • Competitive interest rates
  • Local approval and servicing
  • Quick decisions
  • Experienced loan officers
  • Personalized service

We'll be there very step of the way; and then help with long term financing when your home is complete.

NOTE: Since there are extensive regulations on financing for new construction, always check with one of our loan professionals before starting any construction project.

New Construction Loans

Found some land you like? Excited to design and build the home of your dreams?

Contact our Mortgage Loan Department:

  • Apply for your loan online! We will contact you after processing your application.
  • If you have more questions or special circumstances, give us a call to make an appointment with a loan officer and we can go over your options with you in a quick 45 min. appointment.

CONTACT INFO

Phone: 907-459-5974

Fax: 907-459-5980

Email: homeloans@spiritofak.com

We will work with you to:

  • Identify a contractor or build the home yourself
  • Walk you through the construction loan process
  • Inspect the property through construction
  • Contractors! Please inquire about financing for residential and commercial projects.

Our Mortgage Department offers:

  • Competitive interest rates
  • Local approval and servicing
  • Quick decisions
  • Experienced loan officers
  • Personalized service

NOTE: Since there are extensive regulations on financing for new construction, always check with one of our loan professionals before starting any construction project.

Construction Loan Details

Where do I start?


Once you are pre-qualified, it is time to get started on preparing for the loan. The owner/builder either assumes the role of general contractor and facilitates the construction of the home from start to finish, or hires the services of a licensed residential contractor. We will need the following information:

  • The legal description of the property
  • A copy of your house plans and list of improvements (or in the case of New Construction, your blueprints)
  • A breakdown of your proposed costs. (Remember to add a 20% contingency amount for cost overruns)
  • A list of materials being used in your renovations. (This is a good time to shop so you know exactly what materials you will use for your project).
  • A copy of the purchase agreement (for Mini Construction loans only)
  • ICBO inspections: In the case of a Mini Construction loan, if the home was built on or after 1992 we need updated ICBO inspections to help safeguard the home is being build up to code.
  • City building permits may apply depending on the location of the home.
  • A survey of the property (and an engineer's report if it is a Mini Construction loan)

Once the appraisal based on the finished value validates that your project is cost-effective, you are on you way to closing your mini-construction loan!


Things to keep in mind


Spirit of Alaska FCU has been working with owner-builders since 1993 and knows that home renovations can seem like a daunting task. We strive to make it as easy as possible to access your renovation funds and successfully complete your project.


Please note:

  • We give you up to 12 months to complete your home (Extensions are available at a cost.)
  • Periodic inspections from a Spirit of Alaska FCU inspector take place throughout the construction process
  • You pay monthly interest-only payments only on funds as you borrow them.
  • For your convenience, taxes and insurance will be included in your payment.
  • Your Mini Construction loan will be disbursed through a process of reimbursement for receipts of allowable expenditures or the credit union paying vendors directly.

After construction is complete, the home will be re-financed to a long-term interest rate mortgage.


We look forward to hearing from you!