7 Best Construction Mortgage Lenders of 2020

Why we like it

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.

Why we like it

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.

Why we like it

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.

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.

Why we like it

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.

Why we like it

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.

Why we like it

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.