Custom Construction Loans Put Credit Unions in Foreman's Seat
Despite potentially more complications, lengthier time lines and higher risks, more credit unions have begun financing the construction of new homes.
“There really isn’t any rhyme or reason about which credit unions offer these loans,” said John Murphy, mortgage manager for the $453 million Consumers Credit Union in Kalamazoo, Mich., which serves 52,000 members.
All these different individuals and parts require some degree of management and expertise, Olson explained. For instance, credit unions doing custom construction lending need to be sure they have evaluated the most active building firms in their communities. If a member wants to use a builder that is not on their list, they need to carefully check out that builder before they start to work with the firm, he advised.