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People Driven Credit Union

Construction Mortgage Loan Alternatives

It’s a better way to finance your dream home

Construction Financing Options

Construction loans for people who enjoy paperwork, delays, and budget surprises

Build your dream home from the ground up. Pick every finish. Create the perfect space. Then reality shows up with permit delays, rising material costs, contractor schedules, surprise expenses, and a budget that suddenly needs mental health therapy sessions worked in to the cost.

People Driven Credit Union does not offer construction loans. They can be complicated, expensive, and stressful. For many borrowers, there is a simpler path. If you are buying a home that is already built, a traditional mortgage may be the better fit. If you already own a home and want to improve it, a home equity loan or home equity line of credit may make more sense.

People Driven Credit Union has extensive experience with construction loans. That’s why we don’t offer them anymore.

Why construction loans can be such a headache

Construction loans are not as simple as a typical home loan. Instead of financing a completed home, you are financing a project with a lot of moving parts. That can mean more paperwork, more inspections, more delays, and more opportunities for costs to rise.

Even the best plans can get off track. Materials get more expensive. Timelines get pushed back. Contractors run into issues. Weather causes delays. Before long, your dream kitchen is still studs and plywood, and your budget is doing its best not to pass out.

Construction loans can also come with higher complexity than many borrowers expect. Funds are often released in stages. Lenders may require draw schedules, progress checks, and detailed documentation. That may work for some people, but for many buyers, it adds stress at the exact moment they were hoping to feel excited.

A simpler option for buying a home

If you are shopping for a home that is already built, a traditional mortgage is usually the more straightforward route. You know what you are buying. You can inspect the home before closing. You have a clearer sense of timing, costs, and what your monthly payment may look like.

At People Driven Credit Union, our mortgage options can help you finance a home purchase without the extra complications that often come with a construction loan. It is a more predictable path, and in many cases, that is exactly what buyers want.

Explore Mortgage Loan Options

Already own a home? Use your equity instead

If you already own a home and want to make updates, add space, or tackle major repairs, you may not need a construction loan at all. A home equity loan or home equity line of credit could help you finance improvements using the equity you have built in your current home.

That means you may be able to move forward with your renovation plans without starting from scratch, dealing with a brand-new build, or trying to explain to your lender why the backsplash now costs more than your first car.

Home equity solutions can be a practical option for projects like kitchen remodels, bathroom updates, roofing, windows, flooring, additions, and other home improvements.

Explore Home Equity Options

Let’s keep this simple

If your goal is to buy a home or improve the one you already own, there may be an easier way to get there. People Driven Credit Union offers financing options designed for real life, not for managing subcontractors, concrete pours, and a six-month argument about cabinets.

Take a look at our mortgage and home equity options to find a solution that fits your next move:

Frequently Asked Questions

Construction loans can be complicated, expensive, and unpredictable. They often involve staged funding, contractor coordination, inspections, budget changes, and a lot more stress than people expect. Instead, People Driven Credit Union focuses on options that are often easier to manage, like traditional mortgages for home purchases and home equity solutions for improvements to a home you already own.

Connect with PDCU's Mortgage Loan Officer if you need help being talked out of a construction loan.

Meet Our PDCU Mortgage Specialist

Michelle Dzon is authorized to act as an agent on behalf of People Driven Credit Union. Contact her for personalized assistance with your mortgage needs.

Michelle Dzon

Michelle Dzon

Member First Mortgage

michelle.dzon@memberfirstmortgage.com

616-301-1714 | NMLS ID: #401292

You mean when the construction costs exceed the loan amount? When construction costs exceed the loan amount, you will be responsible for covering the additional expenses. It’s crucial to have a detailed budget and contingency plan to avoid running short on funds during construction.

Or...

Connect with PDCU's Mortgage Loan Officer if you need help being talked out of a construction loan.

Eligibility requirements can vary but typically include a good credit score, a stable income, a detailed construction plan, and a contract with a licensed builder. Some lenders may also require a down payment.

Connect with PDCU's Mortgage Loan Officer if you need help being talked out of a construction loan.

Construction loans can be used to cover the costs associated with building a new home. This includes land purchase (if not already owned), construction materials, labor, permits, and other related expenses. Also can be used to create stress, cause headaches, and escalate tension with your family.

Connect with PDCU's Mortgage Loan Officer if you need help being talked out of a construction loan.

A one-time close construction loan gets you a half-built dream home! Eventually.

Connect with PDCU's Mortgage Loan Officer if you need help being talked out of a construction loan.

Hypothetically, construction loans provide funds in stages as your home is being built. These funds are disbursed to your builder based on a pre-agreed schedule, often called "draws." During construction, you typically make interest-only payments on the disbursed amounts. Once construction is complete, the loan transitions to a permanent mortgage, and you start making regular mortgage payments.

In reality, a construction loan can work differently. Connect with PDCU's Mortgage Loan Officer if you need help being talked out of a construction loan.

A construction loan is a bad idea. A construction loan is used to finance the building of a home from the ground up. It sounds exciting until permits take forever, material costs climb, timelines shift, and somebody says, “that was not included in the original estimate.” For many buyers, a traditional mortgage on an existing home is a much simpler path.
The NMLS ID# (Nationwide Multistate Licensing System & Registry Identification Number) is a unique identifier assigned to mortgage loan originators (MLOs) and institutions involved in mortgage lending. It was created by the federal government to increase transparency and accountability in the mortgage industry. Why the NMLS ID Matters The NMLS database tracks licensing status, employment history, and any regulatory actions. This helps protect consumers by making sure only properly licensed professionals handle your mortgage. You can verify any loan officer or lender instantly. Where You Will See the NMLS ID Mortgage professionals must display their NMLS ID on all advertising, loan documents, emails, and websites. At People Driven Credit Union, every mortgage team member proudly shows their NMLS ID so you always know who you are working with. It is a unique identifier assigned to mortgage loan originators and institutions. You can verify any MLO or company at the official NMLS Consumer Access website. Get Help from Our Team Call us at 844-700-7328 during business hours. Our team explains what an NMLS ID is and shares the NMLS ID for any loan officer working on your file. You can also visit any branch in Livonia, Southfield, Warren, Ypsilanti, or Romeo. 5 Helpful Hints About NMLS IDs
  1. First, always look for the NMLS ID on any mortgage advertisement or document.
  2. Next, verify the ID at the official NMLS Consumer Access website.
  3. Also, ask your loan officer for their personal NMLS ID number.
  4. Then, check the company’s NMLS ID for People Driven Credit Union.
  5. Finally, contact us at 248-263-4100 to confirm any NMLS ID on your loan file.
People Driven Credit Union uses the NMLS system to ensure complete transparency and consumer protection in every mortgage transaction. You can trust that every team member helping you is properly licensed and registered. Many members appreciate the peace of mind that comes from knowing exactly who is handling their home loan.
To apply for a mortgage, you will need to provide the following documents to verify your identity, income, assets, and employment. Required Documents & Why They are Needed
  • Copy of your driver’s license or state-issued ID – Verifies your identity and legal name.
  • Last 2 years of W-2 forms – Prove your employment history and income stability.
  • Most recent 30 days of pay stubs – Shows your current income and allows us to calculate your debt-to-income ratio accurately.
  • Last 2 years of Federal Tax Returns (including all schedules) – Confirms your reported income and helps lenders assess your overall financial picture.
  • Most recent two months of bank statements (all pages) – Verifies your assets, down payment funds, and that you have enough reserves after closing.
  • Contact information for your homeowner’s insurance agent – Required to set up the proper insurance coverage for the property at closing.
Why These Documents Matter Lenders use these documents to confirm you can afford the loan and meet underwriting guidelines. Having them ready when you apply can shorten your approval time from weeks to days. 5 Helpful Hints When Preparing Mortgage Documents
  1. Gather everything before you apply — it can save you weeks of delays.
  2. Make sure all pages of the bank statements are included.
  3. Include all W-2s and tax returns, even if you filed jointly.
  4. Scan or take clear photos of your documents for easy upload.

How do I check my loan application status at People Driven Credit Union?

You can check your loan application status by contacting People Driven Credit Union or your assigned loan specialist. Many members ask how do I check my loan application status because they want fast updates on their progress.

How to check the status

  • Call PDCU member or loan support at 248-263-4100.
  • Have your identifying information ready for verification.
  • Ask whether any additional documents are needed to proceed.
Checking your loan application status at People Driven Credit Union is simple and secure. You receive clear answers quickly. Our team keeps you informed every step of the way.

Call for Your Status Update

Pick up the phone and dial 248-263-4100 during business hours. Our loan specialists answer right away. Give them your name, application number, or Social Security number. They pull up your file instantly.

Prepare for the Call

Have your driver’s license or member number ready. Note any recent emails or letters from us. This speeds up the process so you get answers faster.

Common Questions

How long does a review usually take? Timing varies by loan type and application volume, so contact PDCU for your current status timeline.

Get Help from Our Team

Call us at 248-263-4100 during business hours. Our team checks your status right away. You can also visit any branch in Livonia, Southfield, Warren, Ypsilanti, or Romeo.

5 Helpful Hints for Checking Your Loan Application Status

  1. Call early in the day for shorter wait times.
  2. Write down your application number before you call.
  3. Ask for an email summary of your current status.
  4. Check your spam folder for any updates from PDCU.
  5. Contact us at 248-263-4100 if you need to submit more documents.
People Driven Credit Union keeps you informed about your loan application status. You feel confident knowing exactly where things stand. Our team works hard to move your application forward quickly. Many members receive approval updates within days. Thank you for trusting us with your loan needs. Our team is always ready to help you reach your financial goals.

Disclosures

Construction loans are not available through People Driven Credit Union. Turns out financing a half-built house, three change orders, and a stressed-out contractor is not really our thing. We do offer mortgage and home equity options that may be a better fit.

If your plan involves buying a completed home, we recommend exploring our mortgage options. If your plan involves improving the home you already own, a home equity loan or HELOC may make more sense.

We like our financing the same way most people like their homes, finished, functional, and not suddenly costing 20% more because somebody changed the tile.

People Driven Credit Union: 24333 Lahser Road, Southfield, MI 48033; Phone: (248) 263-4111; NMLS ID# 776727. Equal Housing Opportunity. For licensing information, please visit www.nmlsconsumeraccess.org.

Membership Requirement

All accounts and loans require membership at People Driven Credit Union. Membership is available to individuals who live, work, worship, or attend school in the State of Michigan, as well as relatives of current members. To complete an application for any account or loan, you will need the following information:
  • A valid Driver's License, State ID, or Passport with your current address
  • Your Social Security Number
A Membership Share Savings Account is required to establish membership at People Driven Credit Union. A $5 deposit secures your ownership share in the credit union and unlocks access to our full suite of products and services. This account earns 0.01% APY with a $5 minimum deposit.