4 Best Construction Mortgage Lenders of July 2025
Not every mortgage provider offers construction loans. We've chosen home construction lenders that rank among the best in several categories.
Many or all of the products on this page are from partners who compensate us when you click to or take an action on their website, but this does not influence our evaluations or ratings. Our opinions are our own.
Building a house or buying a house that's under construction — rather than purchasing an existing home — provides an opportunity for some personalization. But it comes with a challenge. You'll need to think about financing the building phase as well as the completed home.
If you are buying an unbuilt home that's in a development, there's a good chance you'll be offered financing by the developer. That doesn't mean you can't compare your options to see if you could get a more favorable interest rate or better terms. And if you're building a home outside of a development, finding an experienced and accommodating home construction lender is essential. NerdWallet has chosen these construction mortgage lenders as standouts.
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- 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.
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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.
4 Best Construction Mortgage Lenders of July 2025
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Lender | NerdWallet Rating | Min. credit score | Min. down payment | Learn more |
|---|---|---|---|---|
 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 | |
 Truist: NMLS#399803 Compare More Lenders on NerdWallet | 620 | 3% | Compare More Lenders on NerdWallet |
- 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 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.
What type of loan is best for building a house?
While a traditional mortgage finances buying a house, a construction loan provides money for building a house. Construction loans have shorter terms and higher interest rates than traditional mortgages. The lender pays the loan proceeds in installments to the contractor as building progresses. Once the home is completed, the construction loan is paid in full or converted to a permanent mortgage.
Types of construction loans
There are a few types of home construction loans:
A construction-to-permanent loan, also known as a "single-close" construction loan, becomes a permanent mortgage when the home is complete.
A construction-only loan, also known as a "two-close" loan, is paid off when building is finished. Unless you have ample cash to pay off the loan, you'll need to shop for a traditional mortgage during the building process.
Renovation construction loans include the cost of major renovations in the mortgage. The total loan amount is based on the value the home will have once the construction work is done.
Is a construction loan harder to get than a traditional mortgage?
Getting approved for a construction loan is generally more difficult than getting approved for a traditional purchase mortgage because there isn't a completed house to secure the loan during the building phase. A typical down payment is 20%, although a lower down payment may be allowed with some programs. Credit score requirements vary by type of loan and lender. A credit score of 720 or above is typically sufficient.
If you are buying a home that's being built by a developer, rather than a builder you've hired on your own, the developer will likely offer you either direct financing or a loan through a lender they've partnered with. While working with the developer's preferred lender may make parts of the process easier, it's worth comparison shopping different construction loans to make sure that you aren't trading considerable cash for a bit of convenience.
More from NerdWallet
Last updated on August 1, 2023
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 50 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 information about construction loans on their websites, and achieve at least an overall 4.5-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 2021 HMDA data for origination volume, origination fee, average interest rate and share-of-product data.
NerdWallet's Best Construction Mortgage Lenders of July 2025
- Flagstar: Best for rate transparency
- U.S. Bank: Best for jumbo lending
- Wintrust Mortgage: Best for first-time home buyers
- Truist: Best for construction-to-permanent
