BEST OF

5 Best Construction Mortgage Lenders of 2021

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

NerdWalletMay 5, 2021

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Building a house or buying a new house that's currently under construction, rather than buying an existing home, provides an opportunity for some personalization — at the cost of a certain degree of difficulty. There are options to consider when financing the building phase, as well as for putting a permanent mortgage into place.

Finding an experienced and accommodating new construction lender is essential. NerdWallet has chosen these construction mortgage lenders as standouts.

Due to the coronavirus pandemic, getting a construction loan may be a bit of a challenge. Lenders are dealing with high loan demand and staffing issues that may slow down the process. Also, some lenders have increased their fees or temporarily suspended certain construction loan products. If you can’t pay your current home loan, refer to our mortgage assistance resource. For the latest information on how to cope with financial stress during this pandemic, see NerdWallet’s financial guide to COVID-19.

Summary of Best Construction Mortgage Lenders of 2021

Homebridge: NMLS#6521

4.0

NerdWallet rating 
Homebridge

Min. Credit Score

620

Min. Down Payment

3%

Why we like it

Good for borrowers who want a loan officer's help, in person or on the phone, when deciding among the wide range of available mortgage options — including loans to buy and renovate.

Pros

  • Offers a full array of mortgage products, including government and renovation loans.

  • Has loans for most purposes, including purchase, refinance and jumbo mortgages.

  • Online portal keeps borrowers up-to-date on the loan application's progress.

Cons

  • Doesn't post interest rates on its site.

  • Doesn’t directly offer home equity loans or lines of credit.

Read Full Review

TD Bank: NMLS#399800

4.5

NerdWallet rating 
TD Bank

Min. Credit Score

620

Min. Down Payment

3%

Why we like it

TD Bank Mortgage gets high marks for its variety of loan products and mortgage types, and excels at online convenience, including providing customized mortgage rates on its site.

Pros

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

  • Offers specialty loans like construction-to-permanent mortgages and medical professional mortgages.

  • Among the best when it comes to online convenience, including loan process updates.

Cons

  • Available only in states on the East Coast.

  • The only way to see mortgage rates is through a customizing form.

Read Full Review

PrimeLending: NMLS#13649

3.5

NerdWallet rating 
PrimeLending

Min. Credit Score

620

Min. Down Payment

3%

Why we like it

Good for: borrowers looking for closing cost assistance, as well as those seeking to renovate or to build a new home.

Pros

  • Full online application includes document uploads and automated loan updates.

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

  • Offers a proprietary closing-cost assistance program.

Cons

  • No online mortgage rates — you have to contact the lender for info.

  • Doesn't offer home equity products.

Read Full Review

US Bank: NMLS#402761

4.5

NerdWallet rating 
US Bank

Min. Credit Score

620

Min. Down Payment

3%

Why we like it

U.S. Bank gets high marks for its loan offerings and online customer conveniences — and has competitive fees and mortgage rates.

Pros

  • Offers a full line of conventional and government loan products.

  • Provides home equity loans and lines of credit.

  • Allows borrowers to apply and track their loan's progress online.

Cons

  • No personalized mortgage rates available online.

  • Published mortgage rates assume an above-average credit score.

Read Full Review

BB&T (Truist): NMLS#399803

4.5

NerdWallet rating 
BB&T (Truist)

Min. Credit Score

620

Min. Down Payment

3%

Why we like it

Good for: borrowers in the Southeast who want the option of face-to-face service. BB&T is now part of Truist Financial Corp., which offers a full menu of home loans.

Pros

  • Offers a variety of home loans, including construction-to-permanent loans, physicians loans and jumbo loans.

  • Has a robust online mortgage application.

Cons

  • Branches limited to mostly the Southeast region.

  • Custom rates are only available if you speak with a representative.

Read Full Review

Last updated on May 5, 2021

Methodology

NerdWallet's star ratings for mortgage lenders are awarded based on our evaluation of the products and services each lender offers to consumers who are actively shopping for the best mortgage. The five key areas we evaluated include the variety of loan types and products offered, online conveniences, online mortgage rate information, and the rate spread and origination fee lenders reported in the latest available Home Mortgage Disclosure Act data. 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 2021