Best of

7 Best Construction Mortgage Lenders of 2020

NerdWalletFebruary 21, 2020

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Construction loans aren't offered by every mortgage provider. We've chosen home construction lenders that rank among the best in several categories.

Summary of Best Construction Mortgage Lenders of 2020

LenderBest For

Minimum Credit Score

Minimum Down PaymentLearn More
Flagstar

Flagstar

construction loans overall

620

3%

Read review
Northpointe

Northpointe

at Northpointe

buying vacant land

620

3%

at Northpointe

Wells Fargo

Wells Fargo

face-to-face service

620

3%

Read review
US Bank

US Bank

face-to-face service

620

3%

Read review
PrimeLending

PrimeLending

customer convenience

620

3%

Read review
TD Bank

TD Bank

flexible-use construction loans

620

3%

Read review
BB&T

BB&T

flexible terms

620

3%

Read review

Flagstar: NMLS#417490

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Min. Credit Score

620

Min. Down Payment

3%


Why we like it

Ideal for those who appreciate the full-service experience of a leading regional bank. Flagstar offers a full menu of fixed and adjustable home loans and mortgage refinancing, as well as jumbo loans and home equity financing.

Pros

  • Embraces FHA-backed home loans.

  • Offers several types of construction and renovation mortgages.

  • A professional loan package is tailored for the needs of doctors, lawyers, nurse practitioners, airline pilots and certified public accountants.

  • Flagstar reps are familiar with low-down-payment state bond programs for first-time home buyers and income-limited households, as well as the areas that qualify for USDA loans.

  • Offers home equity loans and home equity lines of credit.

Cons

  • Charges an average $1,295 in underwriting and processing fees.

Read Full Review
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at Northpointe

Northpointe: NMLS#447490

Logo

Min. Credit Score

620

Min. Down Payment

3%

at Northpointe


Why we like it

Ideal for those seeking the expanded loan offerings of a bank — or a no-down-payment loan that helps accelerate home equity accumulation.

Pros

  • A full slate of loan offerings.

  • Offers a no-down-payment loan with shorter repayment terms that helps accelerate home equity accumulation.

  • Serves all 50 states plus the District of Columbia.

Cons

  • Typically charges a $1,195 origination fee.

  • Online capabilities lacking until a new mobile app gets wide distribution.

Read Full Review

Wells Fargo: NMLS#399801

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Min. Credit Score

620

Min. Down Payment

3%


Why we like it

Ideal for borrowers looking for a national lender with a complete selection of mortgage products for home buyers in all financial stages.

Pros

  • Loan programs to educate and assist first-time home buyers, union members and others.

  • Relocation and employee mortgage programs for many large companies.

  • Accepts down payments as low as 3% on fixed-rate mortgages through its yourFirst Mortgage program.

Cons

  • Government actions and scandals have damaged consumer trust.

Read Full Review

US Bank: NMLS#402761

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Min. Credit Score

620

Min. Down Payment

3%


Why we like it

Pros

  • Full line of conventional and government loan products.

  • Considers alternative credit data, like utility bills, in some cases.

  • Offers construction and investment-property loans in some areas.

Cons

  • No personalized rates available online.

  • Not all loan products offered are listed on its website.

Read Full Review

PrimeLending: NMLS#13649

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Min. Credit Score

620

Min. Down Payment

3%


Why we like it

Ideal for borrowers with past credit issues and those looking for down payment and closing cost assistance programs.

Pros

  • Low rate of consumer complaints filed with the Consumer Financial Protection Bureau.

  • Offers a "float-down" interest rate lock.

  • Offers a proprietary closing-cost assistance program.

Cons

  • No online mortgage rates.

  • Charges an origination fee.

  • Doesn't offer home equity products.

Read Full Review

TD Bank: NMLS#399800

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Min. Credit Score

620

Min. Down Payment

3%


Why we like it

Ideal for East Coast residents looking for low-down-payment mortgages, to work with state housing agencies, or to get loans for building or remodeling a home.

Pros

  • Allows 3% down payment without borrower-paid mortgage insurance.

  • Helps borrowers find help from state and local housing authorities.

  • Emphasizes construction-to-permanent mortgages.

  • Purchase-and-renovation loans with more flexibility than the FHA offers.

Cons

  • Available only in states on the East Coast.

  • The loan process is not executed online.

Read Full Review

BB&T: NMLS#399803

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Min. Credit Score

620

Min. Down Payment

3%


Why we like it

Ideal for borrowers in the Southeast who want online tools with the option of face-to-face service. BB&T, now part of Truist Financial Corp., offers a full menu of home loans.

Pros

  • Offers a variety of low-down-payment mortgage options

  • Offers construction loans to build a home or make significant renovations to an existing home.

  • Flexible borrowing and payment options for home equity loans and lines of credit.

  • Full suite of online capabilities.

Cons

  • Branches limited mostly to the Southeast.

Read Full Review

Last updated on February 22, 2020

Methodology

NerdWallet's selection of mortgage lenders for inclusion here was made based on our evaluation of the products and services that lenders offer to consumers who are actively shopping for the best mortgage. The six key areas we evaluated include the loan types and loan products offered, online capabilities, online mortgage rate information, customer service and the number of complaints filed with the Consumer Financial Protection Bureau as a percentage of loans issued. We also awarded lenders up to one bonus star for a unique program or borrower focus that set them apart from other lenders. To ensure consistency, our ratings are reviewed by multiple people on the NerdWallet Mortgages team.

To recap our selections...

NerdWallet's Best Construction Mortgage Lenders of 2020