Most people can’t afford to design and build their own home or pay for major renovations out of pocket, which is why many lenders offer construction loans — shorter-term loans used to finance construction/rehabilitation of or addition to a residence. Here is Bankrate’s guide to the best construction loan lenders in 2023.
Best construction loan lenders
Cardinal Financial
Availability |
Available in all U.S. states |
Loans offered |
Conventional, jumbo, FHA, VA, USDA, fixed-rate; rate-and-term refinancing |
Credit requirements |
580 for conventional loans, 550 for FHA loans |
Down payment minimum |
Varies |
Where to find |
Online only |
Cherry Creek Mortgage
Availability |
Available in 43 states; not available in Alaska, Hawaii, Massachusetts, New York, Rhode Island, Vermont, Virginia and Washington, D.C. |
Loans offered |
Conventional, jumbo, FHA, VA, USDA, fixed-rate, adjustable-rate; rate-and-term and cash-out refinancing; construction and renovation loans; reverse mortgage |
Credit requirements |
620 for conventional loans; 700 for jumbo loans; 620 for FHA loans; 620 for VA loans; 640 for USDA loans |
Down payment minimum |
Varies |
Where to find |
Online or in person |
Garden State Home Loans
Availability |
Available in Connecticut, Delaware, Florida, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Pennsylvania, Tennessee, Texas and Virginia. |
Loans offered |
Conventional, jumbo, FHA, VA, USDA, fixed-rate, adjustable-rate; rate-and-term and cash-out refinancing; home equity loan; construction and renovation loans; debt service coverage ratio (DSCR) loans; non-QM |
Credit requirements |
640 for conventional loans |
Down payment minimum |
Varies |
Where to find |
Online or in person |
LowRates.com
Availability |
48 states (not Georgia or Massachusetts) |
Loans offered |
Conventional, jumbo, FHA, VA, USDA, fixed-rate, adjustable-rate; rate-and-term, cash-out and streamline refinancing; home equity line of credit (HELOC), home equity loan; construction and renovation loans; investment property; reverse mortgage |
Credit requirements |
620 for conventional loans; 620 for jumbo loans; 500 for FHA loans; 500 for VA loans |
Down payment minimum |
Varies by loan type |
Where to find |
Online |
NBKC Bank
Availability |
All U.S. states |
Loans offered |
Conventional, jumbo, FHA, VA, fixed-rate, adjustable-rate; rate-and-term, cash-out and streamline refinancing; home equity line of credit (HELOC), home equity loan; construction and renovation loans |
Credit requirements |
620 for conventional loans; 680 for jumbo loans; 620 for FHA loans; 620 for VA loans |
Down payment minimum |
Varies by loan type |
Where to find |
NBKC has just a few branches. |
Reliant Home Funding
Availability |
Available in Colorado, Connecticut, Delaware, Florida, Georgia, Louisiana, Maine, Maryland, Massachusetts, Minnesota, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Vermont, Virginia, Washington and Washington, D.C. |
Loans offered |
Conventional, FHA, VA, USDA, fixed-rate, adjustable-rate; rate-and-term, cash-out and streamline refinancing; construction and renovation loans; flex-term; reverse mortgage |
Credit requirements |
620 for conventional loans; 500 for FHA loans; 700 for adjustable-rate mortgages; 620 for renovation loans |
Down payment minimum |
Varies by loan type |
Where to find |
Online or by app |
U.S. Bank
Availability |
All states |
Loans offered |
Conventional, jumbo, FHA, VA, USDA, fixed-rate, adjustable-rate; rate-and-term, cash-out and streamline refinancing; home equity line of credit (HELOC), home equity loan; construction and renovation loans; investment property; interest-only |
Credit requirements |
620 for conventional loans; 740 for jumbo loans |
Down payment minimum |
Varies by loan type |
Where to find |
Online or at branches |