Best of

6 Best Construction Mortgage Lenders of 2020

NerdWalletJune 29, 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.

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.

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.

Summary of Best Construction Mortgage Lenders of 2020

HomeBridge: NMLS#6521

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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 offer home equity loans or lines of credit.

Read Full Review

TD Bank: NMLS#399800

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Min. Credit Score

620

Min. Down Payment

3%


Why we like it

Good 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.

  • 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.

  • You'll need to fill out a short form to see potential mortgage interest rates.

Read Full Review

PrimeLending: NMLS#13649

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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

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Min. Credit Score

620

Min. Down Payment

3%


Why we like it

Good for: borrowers who prefer a traditional bank with a wide variety of loan products, including some specialty offerings, like 80-10-10 mortgages.

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

Wells Fargo: NMLS#399801

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Min. Credit Score

620

Min. Down Payment

3%


Why we like it

Good for: borrowers looking for a national lender with a wide selection of mortgage products for home buyers in all financial stages.

Pros

  • Provides numerous online conveniences, including loan application and process updates.

  • Current rates clearly posted for various loan products.

  • Offers a wide variety of loan types and products.

Cons

  • New applications for home equity lines of credit suspended during COVID-19 crisis.

  • Government actions and scandals have damaged consumer trust in recent years.

Read Full Review

BB&T: NMLS#399803

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Min. Credit Score

620

Min. Down Payment

3%


Why we like it

Good 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 mortgages as well as construction mortgages.

  • Website lets users estimate rates online by loan and property type, amount and location.

  • Has an online mortgage application.

Cons

  • Branches limited mostly to the Southeast region.

  • Does not offer FHA loans.

Read Full Review

Last updated on June 29, 2020

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 2020