Financing for the construction of your own home





Owner-occupied construction financing with a competitive rate—and credit for your sweat equity

Owner-builder construction loans
Whether hiring a professional or building it yourself, Denali’s owner-builder construction loan was made to help Alaskans build—or build onto—their dream homes.

Also known as an interim construction loan, the financing may be used to build a new one- to four-family owner-occupied dwelling or to add on to your existing primary residence. Once construction is completed, the loan converts to long-term financing, typically with Denali’s Home Loan Department.

These loans are used by owner-builders as well as by those who retain a professional contractor or builder—as long as the construction is for their own primary residence.

Fast facts 

  • Owner-builder construction loans can fund up to 90 percent of the cost of construction or 80 percent of appraised value or sales price—whichever is less.  
  • The loans are made to fund construction for primary residences only—not investment property.
  • Monthly inspections by a third party are required to verify construction progress.
  • The money is not provided in a single lump sum but is disbursed as work progresses, and owner-builders must document every disbursement with receipts and details.
  • However, for qualifying owner-builders, these owner-builder loans may provide a way to leverage the increasing value of your home even as you are building it.

How it works
An owner-builder construction loan is a very specialized, short-term, non-revolving line of credit that helps Alaskan owner-builders use the value of their property (including the value it gains from successful construction) to fund work on a one- to four-family primary residence.

To ensure the credit union is in first-lien position, Denali may first acquire your lot, pay off existing liens, or both.  Remaining loan funds are then released to a special member account in phases as construction proceeds.

Funds are made available through this account monthly based on inspection of each phase. You may use the account only to pay vendors for labor and materials contributed to the project.

An owner-builder has up to 12 months in which to complete construction and convert to the long-term mortgage loan. The interim loan is paid off with proceeds from the long-term financing.

Requirements & interest rates
To qualify for this loan, a property must meet all long-term lender and secondary market requirements, and the construction must meet the Building Energy Efficiency Standards established by state regulations. The applicant must also have adequate cash reserves to complete construction and close the long-term mortgage. 

In most owner-builder situations, the owner will contract with a builder to construct a specific house on a parcel of land that the borrower already owns or is purchasing. If the builder is unknown to Denali, a resume, references, business license, and entity documentation will be required.

Upon applying, account documents will provide all terms and cost disclosures.

When to use an wwner-builder loan
Owner-builder construction loans are designed only to be used for construction of your primary residence. There are basically two instances in which they can be used:

  • Building a home for yourself and your family.
  • Adding on to or renovating your primary residence (for example, you may wish to add new rooms for your growing family, or need to build in-law quarters).


  • Build the home of your dreams at a competitive rate.
  • Get credit for “sweat equity” (upon successful project completion).
  • We don’t require the member to hire a builder or contractor.
  • Serviced by local loan originators who understand Alaskan needs and lifestyles.

Fees, rates & other costs

  • Interest rates for this program are calculated at Prime rate + 2.75% - 4.25% and are based on credit scores and other underwriting factors.
  • Fees and other costs may include but are not limited to: a 2% loan origination fee, title insurance, settlement fees, recording fees, tax tracking, and flood determination fees. An appraisal will be required.

Frequently Asked Questions

  •  How much cash do I have to put down? 
  • Typically no less than 10% to 20%.
  •  Will my land be included in the loan?
  •  Credit may be given for equity injected for the land purchase.
  •  Can I purchase the land as part of the construction loan?
  • Yes, you can include the land purchase in your construction loan.
  •  Are owner-builder construction loans available in my community?
  • Because they are dependent upon construction and land values, as well as factors such as the cost of construction, owner-builder construction loans may not be available in all communities served by Denali. Please apply or contact the Real Estate Department for details.
  •  What information will you need about my chosen builder?
  • If the builder is unknown to Denali, a resume, references, business license, and entity documentation will be required.

Loan closing takes place at Denali's Real Estate Department on the second floor of our Financial Center:

Denali. A division of Nuvision Credit Union
Real Estate Department
440 E. 36th Avenue, Suite 220
Anchorage, AK  99503
907-257-1609, or toll-free at 800-764-1123, ext. 1609

Document packet (PDF)







Meet the team that treats you like family. They're friendly, competent and reliable – and they won't stop working until you get the top notch service you've earned.

Tara Tetzlaff

Branch Location Information: 

Business Lending
440 E. 36th Ave.
Anchorage, AK 99503

800-764-1123 ext. 240
Fax: 907-222-5810

8 a.m.-5 p.m.

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Staff Member Bio: 
Tara Tetzlaff

I started in the banking business more than 25 years ago.  I have experience in all aspects of commercial, residential real estate, construction and development lending. It’s important to me that I add value to all of my business relationships. It’s about sharing my knowledge and experience with my customers to help them make the right decisions toward success. 

I’m particularly proud of my contribution to the community, whether it’s financing a small business, a subdivision, a home or supporting the community in other ways. There’s a lot of pride knowing I’ve made a difference in helping build our community.

I have two daughters, family and friends that I enjoy spending time with outdoors. Snowmachining, fishing, skiing, camping – we enjoy it all.

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