Building Loans | Redstone Federal Credit Union

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Building Loans

Are you building a home?

Redstone can help you save time and money with a One-Time Close Building Loan. It combines two loans into one by merging your construction and mortgage financing. Since there is only one loan, there is only one closing, which means you save…a lot.


Borrow up to


Buying in TN? Some counties are eligible for higher loan limits.
Click here for more details.

Finance up to


of the appraised value. 

15 Year Fixed Rate Mortgage

Interest rate as low as


APR as low as 3.862


  • Conventional
  • First-time homebuyers
  • VA
  • USDA
  • Jumbo
  • Condominium 
  • Second Home
  • Investment Property
  • No Private Mortgage Insurance (PMI) 
  • Down Payment Assistance Programs


  • Lower Rate or Term
  • Cash Out
  • VA
  • Home Improvement
  • Home Equity


  • One-Time Close
  • Land Loan

Additional Benefits:

  • Your construction financing simply converts to a permanent mortgage
  • We base your loan on the full value of your lot, not on the original sale price
  • You’ll benefit from interest-only payments on the funds drawn during construction 
  • (up to 9 months)

Building requirements:

  • You are building a single-family, detached home that you will occupy.
  • You are using a licensed general contractor.

Documents you need to get started:

  • A copy of the construction agreement with your builder. This must specify the cost of your home, including options, upgrades, and lot value.
  • If applicable, a land contract for the lot on which your house will be built.
  • Plans and Specifications from your builder.
  • A deed to the lot.

Estimate your closing costs, explore rates and terms, and calculate monthly payments.
Get started with your personalized rate quote.

Why choose Redstone for your Home Loan? 

Competitive rates and closing costs

When you choose Redstone, you get great rates, flexible terms, and low closing costs.

Team of experts

Our Mortgage Team has years of experience and knows the real estate industry inside and out.

Local servicing

From monthly payments to escrow and insurance, Redstone services nearly every mortgage we make.

Home Equity Line of Credit

Borrow up to


Minimum loan amount $10,000.

Finance up to


of the appraised value of your home

APR as low as


Key Features

  • Variable rate, tied to Prime.
  • Borrow funds as needed. Advance through online banking or access with your HELOC Visa credit card.
  • Payments are due on the 15th of every month.
  • Minimum monthly payment is 1.5% of outstanding balance or $100.00, whichever is greater.
  • May be eligible for tax benefits on interest (check with your tax advisor).
  • No annual fee, no appraisal fee, no closing costs.

Ready to apply for a Home Equity Line of Credit? It’s easy!

EVERY Redstone Visa credit card includes all of these features


Quick and easy purchases 

Visa is accepted all over the world

Warranty Manager Service: additional product registration to extend the manufacturer's original warranty on products you buy


Zero-liability fraud protection

Monitor credit card activity with Credit Card Control

Real-time fraud monitoring and fraud text alerts

Identity theft assistance

Savings & Discounts

With Visa SavingsEdge®, you’ll receive discounts at select retailers when you use your Visa credit card.

Redstone Discounts!® when you use your card at many local businesses.

Additional Benefits    

Travel and Emergency Assistance

24-hour Roadside Dispatch service

Auto Rental Collision Damage Waiver insurance coverage for cars rented with your Visa card

Warranty Manager Service manage, use, and extend the warranties of eligible items purchased with your Visa card

Mortgages are only available for properties located in Alabama and Tennessee.

APR=Annual Percentage Rate

The actual interest rate and fees available to you will be based on your credit history and may be different than the rates displayed here. The rates listed above, do not take into consideration any possible adjustments based on changes to any of the loan parameters including loan-to-value (LTV), occupancy, loan amount, repayment feature, loan amount or loan term. Your rate may be different if there is subordinate financing or when loan parameters do not meet secondary market requirements.

Must be an RFCU® member to obtain a loan. Must be eligible for membership and open a share savings account.  A minimum balance of $5.00 is required to open and must be maintained in share savings account at all times.  All loans subject to credit approval and rates are determined by an evaluation of applicant credit at account opening.   Fixed rates remain fixed for the life of the loan and adjustable rates are subject to change after consummation. Various Mortgage programs and terms are available. Fees and other restrictions may apply. RFCU is an Equal Opportunity Lender.

Rates current as of September 1, 2018.

A typical purchase transaction example for 15 Year Construction/Perm mortgages:
The information provided assumes the purpose of the loan is to purchase a vacant lot and construct a home, with a loan amount of $90,000 and a total acquisition cost of $120,000 (assumes a 25% down payment). The property is located in AL and is within Madison County. The property will be used as a primary residence. The rate lock period is 45 days and the assumed credit score is 750. For a $90,000 15-Year Fixed Rate Construction/Perm Mortgage at 4.250% with zero discount points, the APR is 4.530%. The monthly payment schedule would be 6 interest-only payments with the highest payment of $318.75; 179 payments of $677.05; and 1 final payment of $677.20. If the down payment is less than 20 percent, private mortgage insurance (PMI) will be required, which could increase the APR and/or monthly payment. An escrow (impound) account is required and thus the actual monthly payment will also include amounts for real estate taxes and homeowner's insurance premiums.

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Are you ready to join the credit union that puts you first? Become a member of the Redstone family and you’ll start enjoying the great rates, personalized financial advice, and excellent customer service Redstone is known for.

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