Construction Loans: Build Your Dream Home From the Ground Up
Turn your perfect lot into your perfect home with flexible construction financing from Deseret First. Our loans feature interest-only payments during the building phase, giving you financial breathing room while your home takes shape. With local expertise and seamless transitions into long-term financing, you can focus on the design while we handle the details.
Flexible Financing That Grows With Your Home
A construction loan is unlike a traditional mortgage—it's designed to fund each stage of your build. With DFCU, you won't make out-of-pocket payments during construction, since interest is drawn from the loan itself. Monthly inspections ensure progress matches funding, your lot can be included as part of the overall loan package, and lien release checks protect your ownership along the way. Whether you're building a primary residence or a mountain retreat, you'll have a financing partner who understands the process.
One‑Time Close Option
If you want simplicity and predictability, our single-closing construction-to-permanent loan is the way to go. You'll sign one set of documents, lock your long-term interest rate upfront, and enjoy interest-only payments during the nine- or twelve-month building period. When construction is finished, the loan automatically converts into a 15- or 30-year mortgage without another round of paperwork or fees. One closing, one rate, complete peace of mind.
Two‑Time Close Option
For more complex projects or builds with uncertain timelines, a two-time close offers maximum flexibility. This option separates the construction loan from the permanent mortgage, allowing extensions if your project takes longer and providing the possibility of a lower rate when the permanent loan begins. Local underwriting ensures both phases reflect the realities of building in Utah or Idaho, giving you confidence that your financing won't slow you down.
The Building Process
Building a custom home may feel daunting, but with DFCU's process it's manageable. You'll start by creating plans with your architect, selecting a contractor, and finalizing your budget. Once your loan is in place, construction draws begin and monthly inspections keep everything on track. When the last inspection is complete and your home is ready, the loan converts smoothly into permanent financing. Even that dream feature—a hidden room or secret passageway—is financeable within the process.
Local Expertise Matters
Financing is only part of the story—having specialists who know the local building landscape makes all the difference. Our Utah and Idaho loan officers work directly with regional builders and contractors, providing in-state decisions rather than shipping files off to distant underwriters. On-site inspections are done by people who understand construction, and our team takes a teaching approach so you know what to expect at every step. That's why homebuilders consistently rate their experience with DFCU 4.5 stars and higher.
Your Foundation Starts With the Right Financing
Your dream home begins long before you move in—it starts with the right financial partner. With competitive rates, interest-only construction payments, and the option of one-time or two-time closings, DFCU provides both the flexibility and the local expertise to see your vision through. Whether it's your forever home or a weekend getaway, we'll help you lay a financial foundation as strong as the home you're building.
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APR = Annual Percentage Rate. Rate shown is starting rate and subject to change. Construction available in Utah and Idaho only. 12-month completion required. Licensed contractor required. Credit approval and membership required.