9 Best Construction Loan Lenders of July 2025
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If you're building a house or buying one that's still being built, you'll need to pay for both the construction and the completed home. Finding a mortgage lender experienced with construction loans can make the process easier. Here’s NerdWallet’s list of the best mortgage lenders that offer construction loans.
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Why trust NerdWallet
- 50+ mortgage lenders reviewed and rated by our team of experts.
- 40+ years of combined experience covering mortgages and financial topics.
- Objective, comprehensive star rating system assessing 120+ categories and 5,000+ data points.
- Governed by NerdWallet's strict guidelines for editorial integrity.
9 Best Construction Loan Lenders of July 2025
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- 9 Best Construction Loan Lenders of July 2025
- What type of loan is best for building a house?
- Types of construction loans
- Is a construction loan harder to get than a mortgage?
- What is the lowest down payment for a construction loan?
- What is a good credit score for a construction loan?
- How to apply for a construction loan
- Methodology
- Recap
- About the author
Lender | NerdWallet Rating | Min. credit score | Min. down payment | Learn more |
|---|---|---|---|---|
 New American Funding: NMLS#6606 Top 3 most visited 🏆 See Offers at New American Funding | 580 | N/A | Top 3 most visited 🏆 See Offers at New American Funding | |
 Truist: NMLS#399803 Compare More Lenders on NerdWallet | 620 | 3% | Compare More Lenders on NerdWallet | |
 Flagstar: NMLS#417490 Compare More Lenders on NerdWallet | N/A | 5% | Compare More Lenders on NerdWallet | |
 U.S. Bank: NMLS#402761 Compare More Lenders on NerdWallet | N/A | N/A | Compare More Lenders on NerdWallet | |
 Wintrust Mortgage: NMLS#449042 Compare More Lenders on NerdWallet | N/A | N/A | Compare More Lenders on NerdWallet | |
 Movement Mortgage: NMLS#39179 Compare More Lenders on NerdWallet | N/A | N/A | Compare More Lenders on NerdWallet | |
 PrimeLending: NMLS#13649 Compare More Lenders on NerdWallet | 620 | 3% | Compare More Lenders on NerdWallet | |
 Alliant: NMLS#197185 Compare More Lenders on NerdWallet | N/A | N/A | Compare More Lenders on NerdWallet | |
 PNC Bank: NMLS#446303 Compare More Lenders on NerdWallet | 620 | 3% | Compare More Lenders on NerdWallet |
- Why we like itNew American Funding offers a large menu of loan products, as well as programs like first-time home buyer assistance, but personalized mortgage rates aren't available on its website.Pros
- Offers a wide variety of purchase and refinance mortgages, as well as unique buyer assistance programs.
- Its home equity line of credit can be used for a primary residence or second home.
ConsRead full review- Average origination fees are on the high side, according to the latest federal data.
- Personalized mortgage rates are not available on the website without providing contact information.
- Why we like itTruist stands out for its range of accessible mortgage products, including government or conventional loans with flexible credit and down payment requirements.Pros
- Offers mortgage options focused on affordability.
- Convenient online application.
- Offers a HELOC and construction loans.
ConsRead full review- HELOCs are not available in every state.
- Borrowers must reach out for customized rates.
- Why we like itFlagstar Bank stands out for its range of accessible loans and programs, including loans with flexible requirements and down payment grant options. Its mortgage operations were acquired by Mr. Cooper in 2024.Pros
- Conventional loan terms extend to 40 years, which is unusually flexible.
- Offers options for high-balance mortgages.
- Offers specialized mortgages for professionals, such as doctors and lawyers, starting their careers.
- Reported average time to close (20-30 days) is faster than industry standard.
ConsRead full review- The lender’s mobile app is focused on banking, not mortgages.
- Conventional fixed-rate mortgages require a 5% minimum down payment, higher than some competitors.
- Why we like itU.S. Bank stands out for online convenience and impressive mortgage options, from government-backed loans to boutique mortgages. Home improvement loans and borrower assistance are available.Pros
- Offers up to $17,500 in down payment and closing cost assistance.
- Wide variety of mortgage types.
- Experienced with construction-to-permanent and renovation loans.
ConsRead full review- Assistance programs limited to select cities and states.
- Online rate tool doesn’t customize by credit score.
- Why we like itWintrust offers a solid variety of loan types with expertise in government-backed mortgages, but its website lacks some common do-it-yourself features, including the ability to customize rates online.Pros
- Highly rated mobile app.
- Has construction-to-permanent loans.
- Offers up to $6,000 in down payment assistance to qualified borrowers in Illinois and Wisconsin.
ConsRead full review- Can’t customize rates online.
- No chatbot or live chat for customer service.
- Average origination fee is on the high side, according to the latest federal data.
- Why we like itMovement Mortgage has a relatively high market share of FHA loans and offers some harder-to-find types, like FHA 203(k) loans.Pros
- Average closing time under 25 days, faster than the national average.
- Offers down payment and closing cost assistance for FHA loans, with no income limits.
- Profit-sharing model supports charitable giving through the Movement Foundation.
ConsRead full review- Doesn’t post mortgage rates online.
- No online chat for customer service.
- Average origination fee is on the high side, according to the latest federal data.
- Why we like itPrimeLending stands out for its wide variety of loan types, including non-QM loans and renovation and construction options, but lacks some technical features like online rates or a mobile app.Pros
- Offers closing cost assistance.
- Wide variety of loan types, including non-QM loans.
- Mortgages are available for manufactured homes, including 3D-printed houses.
ConsRead full review- Loans are not available in all states.
- Rates are not posted online.
- Does not have a mobile app.
- Why we like itAlliant Credit Union offers some harder-to-find mortgage types and lets you customize interest rates online, but navigating their customer service options can be tricky as a non-member.Pros
- Mortgage borrowers do not need to become members of the credit union until they’ve reached the closing process, so interested home buyers can apply without committing to membership.
- Sample rates are displayed upfront, and it's easy to get detailed, personalized rates without providing any personally identifying information.
- No application fee.
ConsRead full review- Customer service can be difficult to access as a non-member and may require sharing personal information.
- Home equity loans are not available.
- Why we like itPNC Bank has a variety of appealing mortgage options, including jumbo loans, programs for first-time home buyers and home equity lines of credit.Pros
- Low-down-payment loan options include FHA, VA, USDA and PNC Community Loan.
- Jumbo loans available with minimum down payments of 5%.
- Customizable mortgage rates are posted online.
ConsRead full review- Average mortgage rates are on the high side, according to the latest federal data.
- In-person service is not available in every state.
- You’ll have to supply personal data or account info to get answers by phone.
What type of loan is best for building a house?
A construction loan provides money for building a house. These loans tend to have shorter terms and higher interest rates than traditional mortgages.
With a construction loan, instead of releasing all the money at once, the lender pays the builder or contractor in installments as the home is built. When the home is finished, the construction loan is either paid off or turned into a permanent mortgage.
Types of construction loans
There are a few types of home construction loans:
Construction-to-permanent loans. Also called a "single-close" construction loan, this loan becomes a regular mortgage when the home is complete. During construction, you might only have to make interest payments, which can help keep costs lower while you live somewhere else. Because this loan combines a construction loan with a traditional mortgage, you only need to shop for a loan and pay closing costs once.
Construction-only loan. Loans that only pay for construction are also known as "two-close" loans, because you'll need two different loans. The construction loan is paid off when building is finished. Unless you have enough cash to buy the completed home, you'll need to find a traditional mortgage while the home is being built. These loans usually cost more overall because with two closings, you'll pay many of the closing costs and fees twice.
Renovation construction loans. Renovation loans combine the cost of fixing up a home with the mortgage. These are different from construction loans, because you're fixing an existing house, not building a new one. The total amount you can borrow is based on how much the home will be worth after the renovation. Renovation loan options include Freddie Mac CHOICERenovation loans and FHA 203(k) loans.
If you are buying a newly-built home that's already finished, you don't need a construction loan. Since you're not paying for the building process, a regular mortgage will work. The only difference is that you might have to pay a builder's deposit. That earnest money is separate from your down payment.
Is a construction loan harder to get than a mortgage?
Getting approved for a construction loan is usually harder than getting a traditional mortgage because there's no finished house to use as security. You'll need solid finances and possibly a large down payment.
If you are buying a home from a developer rather than a builder you've hired, the developer may offer you financing or a loan through a lender they work with. Using the developer's lender may make the process easier, but it's a good idea to compare different construction loans to see if you can find a better deal.
Sometimes, developers will offer incentives if you work with their lender. But if you'd get a lower interest rate from another mortgage lender, that may be a better deal.
What is the lowest down payment for a construction loan?
Mortgage lenders often require 20% down payments on construction loans. That amount can change depending on how much you borrow, the type of loan and your finances. In some cases, a lender could even ask for a down payment higher than 20%.
What is a good credit score for a construction loan?
The credit score required for a construction loan depends on the loan type. Some lenders may require a credit score of 700 or higher for a conventional construction loan, while government-backed loans usually have lower requirements.
Even though government agencies have minimum credit scores for their loans, lenders can set their own standards. For example, the Federal Housing Administration allows credit scores as low as 500 for FHA 203(k) loans, but some lenders may ask for a higher score.
How to apply for a construction loan
Getting a construction loan involves a few extra steps compared to a regular mortgage. Here's what to expect.
1. Find a builder
To get a construction loan, you'll need to work with a reputable builder. When you apply for a construction loan, the lender will check the builder's license, credit, references and more. The builder also has to provide construction information like blueprints, a budget and a construction schedule.
If you plan to build the home yourself, you may need a special type of construction loan called an owner-builder or self-build loan. These loans aren't for casual DIYers: Lenders will require proof of your ability, including a license and construction experience.
2. Compare construction loan lenders
Look for a lender that offers the type of loan you need, competitive interest rates and terms that fit your budget and timeline.
Applying for preapproval with different lenders can help you see how much you could qualify to borrow and what interest rate you might get. In addition to the usual paperwork — like pay stubs and tax returns — you'll probably need to provide information like building plans and your builder's references.
3. Get homeowners insurance
Even though your home isn't built yet, you'll need homeowners insurance. Most lenders require a policy with builder's risk insurance, which covers the materials and structure during construction.
Once you've got these pieces in place and feel confident about your choice of lender, you'll be ready to apply for a construction loan.
More from NerdWallet
Fact-checked as of June 2, 2025
Last updated on June 2, 2025
Methodology
The star ratings on this page reflect each lender's overall star ratings. Read more about how we determine those ratings.
The lenders on this page are chosen using this methodology:
NerdWallet reviewed more than 40 mortgage lenders, including the majority of the largest U.S. mortgage lenders by annual loan volume (measured among lenders with at least a 1% market share), lenders with significant online search volume, and those that specialize in serving various audiences across the country.
For inclusion in this roundup, lenders must originate construction loans to build a house, offer consumer-oriented information about construction loans on their websites, and achieve at least an overall 3-star rating from NerdWallet.
NerdWallet solicits information from reviewed lenders on a recurring basis throughout the year. All lender-provided information is verified through lender websites and interviews. We also used 2023 HMDA data for origination volume, origination fee, average interest rate and share-of-product data.
NerdWallet's Best Construction Loan Lenders of July 2025
- New American Funding: Best for customer satisfaction
- Truist: Best for variety of loan types
- Flagstar: Best for rate transparency
- U.S. Bank: Best for jumbo lending
- Wintrust Mortgage: Best for first-time home buyers
- Movement Mortgage: Best for variety of loan types
- PrimeLending: Best for custom homes
- Alliant: Best for credit union lending
- PNC Bank: Best for borrowers in AL, AZ, CA, CO, FL, NM, TX, WA
