Interim Construction Loans

Build Your Dream Home—With a Little Help from FWCCU

Get Started with an Interim Construction Loan and Get a $250 Home Improvement Store Gift Card!

Ready to turn your dream home into reality? When you’re building from the ground up, our Interim Construction Loan can help you cover the cost of labor, materials, and more during your project’s construction phase. Plus, for a limited time, when you get an Interim Construction Loan with us in March or April, you’ll receive a $250 gift card to a home improvement store—perfect for stocking up on supplies or finishing touches for your project.

Why Choose an Interim Construction Loan with FWCCU?

  • Interest-Only Payments: Pay only the interest on the funds drawn during the construction phase to keep your monthly payments manageable.

  • Regular Inspections for Quality Assurance: We’ll conduct inspections throughout the process to ensure the job is done right.

  • One-Time Close Option: Skip the extra hassle and closing costs with a single loan that covers both the construction and your permanent mortgage.

  • Full Support from FWCCU: We’re here to guide you through scheduled draws, appraisals, inspections, and more—every step of the way.

  • Seamless Transition to a Mortgage: Once the construction is finished, easily convert your interim loan into a permanent mortgage with terms up to 30 years.

  • Affordable Financing: With low origination fees, we make it easier for you to manage your project’s finances.

How It Works:

  1. Apply for an Interim Construction Loan with FWCCU during March or April and close within 60 days.

  2. Receive a $250 gift card to your choice of home improvement stores.

  3. Enjoy flexible terms, interest-only payments during construction, and professional support throughout your project.

Get Started Today and Save!

Don’t wait—your dream home is within reach, and with a $250 gift card, it’s even easier to make it happen. Let’s build together!

Click below to apply now or call us at 817.732.2803 for more information.

F.A.Q.s:

  • An interim construction loan is a short-term loan that provides funding for the actual construction of a project. Unlike a traditional mortgage, it lasts only as long as it takes to complete the construction. The lender closely monitors the construction process and disburses funds in installments called draws to complete the project.

  • Unlike a traditional mortgage, an interim construction loan is a short-term “interest only” loan that lasts only as long as it takes to complete the construction. During this time, the lender will closely monitor the construction process and give you money in chunks to complete the project. A traditional mortgage is provided for a home that already exists.

  • FWCCU has a Minimum Loan amount of $30,000 and Maximum Loan amount of $1,500,000. Debt to Income and Loan to Value both factor into the approval process as well. Please reach out to the FWCCU team to see what you qualify for!

  • Our Maximum Loan to Value of 90% (10% down payment). Equity from Land you own could be used as all or part of the down payment as well as soft costs that have already been paid for. Contact us for more details!

  • Interim construction loans are a short-term “interest only” loan that lasts only as long as it takes to complete the construction. During this time our members only pay interest on what has been drawn on providing a real value.

  • Think of a draw schedule as your budget for building the home. You and your builders work in partnership to create the floor plan and finish out for the home and from that a budget is made. During construction payments are made periodically based on that budget and contract until the home is completed to your satisfaction.

  • Interim construction loan is a short-term “interest only” loan that lasts only as long as it takes to complete the construction. We will allow up to 12 months to complete, if delayed we can modify the Interim Loan up to an additional 6 months to complete. If over budget, it will depend on Contract with Builder. Generally, there are two types of Interim Contracts: 1) Fixed Amount (builder is responsible) or 2) Cost Plus (borrower is responsible).

  • No, you would consider a Home Improvement Loan to remodel your home.

  • Once the home is completed, we can complete a Modification from Interim into a Permanent Mortgage with minimal closing cost. This is called a One Time Close (OTC) and provides an additional layer of value for our members.

  • To begin the application process, please click HERE to apply online. You will be prompted to create a username and password for your application. You will then receive a confirmation email. Thereafter, you can login to complete the application on your schedule, and upload documents to the secure portal. You can also come in and visit with one of our Interim Construction Loan professionals.

  • Yes, you will need to eventually provide a contractor for the construction. We do have a list of contractors that we have approved on previous construction loans. In the meantime, if you would like to just get prequalified we can do that in advance of the contract.

Terms to know:

Interim Construction Loan: A short-term loan to fund the construction of a property, typically converted into a permanent mortgage once the project is complete.

Draw Schedule: A plan for releasing loan funds in stages based on construction progress.

Interest-Only Payments: Payments on just the interest of the drawn funds during construction, keeping monthly payments lower.

One-Time Close (OTC): A single loan closing that combines both the construction loan and permanent mortgage, saving time and closing costs.

Conversion: The process of switching from an interim loan to a permanent mortgage once construction is finished.

Loan-to-Value Ratio (LTV): The ratio of the loan amount to the property’s appraised value, affecting how much you can borrow.

Fixed-Rate: Interest rate stays the same.

Builder’s Draws: Payments made to the builder at milestones during construction, based on completed work.

Inspections: Periodic checks to ensure construction quality and proper use of funds.

Completion Certificate: A document confirming construction is finished and the property is ready for move-in.

Permanent Mortgage: The long-term loan that pays off your interim construction loan after construction is completed.

Contingency Reserve: A portion of the loan set aside for unexpected costs during construction.

Appraisal: An assessment of the property’s value to determine the loan amount.

Amortization: Paying off the loan over time, typically starting once the permanent mortgage kicks in.

Term: The length of time to repay the permanent mortgage, typically 15 to 30 years.

Fort Worth City Credit Union is an equal opportunity housing lender. In order to provide a full suite of mortgage products and services, Fort Worth City Credit Union (NMLS #547601) has a partnership with Member First Mortgage(NMLS #149532) and may therefore refer some loan types to them.

This notice is not a commitment to make a loan or a guaranty that Fort Worth City Credit Union will extend a mortgage loan to you for the interest rates shown. This information is provided as a service to inform you of the possible interest rate for which you may qualify based on the limited information provided by you, other information available to us, and certain assumptions regarding the financial terms of the mortgage loan, which are subject to change between now and the time you apply for a mortgage loan.  This information is not an offer to extend consumer credit as defined by Section 1026 of Regulation Z. Certain restrictions do apply, so consult with your Tax Advisor regarding the deductibility of interest.

Promotional Terms and Conditions:
The $250 gift card offer is available only to individuals who apply for an Interim Construction Loan with Fort Worth City Credit Union between March 1, 2025, and April 30, 2025 and close on the loan within 60 calendar days. The gift card will be issued after the loan closes. Offer is subject to credit approval and loan funding. Gift card may be subject to tax reporting. Offer is not transferable and may not be combined with any other promotions. Fort Worth City Credit Union reserves the right to modify or cancel this promotion at any time without notice. To qualify for this promotion, applicants must meet the eligibility requirements for an Interim Construction Loan with Fort Worth City Credit Union, including but not limited to creditworthiness, loan amount, and other standard terms. Minimum loan amount required is $50,000. Loan terms are subject to credit approval. The interim construction loan is a short-term financing option with interest-only payments during the construction phase. Upon completion of the construction project, the loan may be converted into a permanent mortgage or paid off with a longer-term loan. Terms for the permanent mortgage will be provided upon loan conversion. The interest rate on the Interim Construction Loan will be based on market conditions and creditworthiness at the time of application. Fees, including but not limited to origination fees, inspection fees, and appraisal fees, may apply. Rates and fees are subject to change without notice. All loans are subject to credit approval and verification. The loan will only be funded after completion of all necessary documentation and underwriting. The $250 gift card offer is only valid for new Interim Construction Loan applications and does not apply to refinancing of existing loans. Gift card will be issued in the form of a physical card, as determined by Fort Worth City Credit Union. This promotion is limited to one gift card per loan. This offer applies only to Interim Construction Loans for properties located in Texas. The property must meet the underwriting guidelines and requirements set forth by Fort Worth City Credit Union. For questions about the terms and conditions, or to request more information about your rights under the law, contact the credit union.