Best Construction Mortgage Lenders
|New American Funding: NMLS#6606 Top 3 most visited 🏆 Learn more at New American Funding
|4.0 /5 Best for customer satisfaction
|Flagstar: NMLS#417490 Read review
|5.0 /5 Best for rate transparency
|US Bank: NMLS#402761 Read review
|4.0 /5 Best for jumbo lending
What type of loan is best for construction?
Construction Loans Compared
|Type of loan
|Homeowners who want to save on closing costs and lock in mortgage financing
|Those who have a large amount of cash on hand or who intend to pay off the construction loan with the sale of their previous home
How do construction loans work in Virginia?
VA construction loans are short-term loans that will help you cover the cost of constructing a new home. Instead of coming as one upfront payment, a VA construction loan only pays for the portions of your home that are completed. In many cases, a VA construction loan will have no down payment requirement.
How do construction loans work in Tennessee?
During the construction phase of the project, borrowers will typically make interest-only payments on the loan. The repayment of the loan usually takes place when construction is complete, and a traditional mortgage replaces the construction loan.
What credit score do you need for Cardinal Financial?
You'll need a credit score of at least 580 for a conventional, FHA or USDA loan from Cardinal Financial. For a VA loan, you'll need a minimum credit score of 550. Jumbo loan borrowers must have a score of at least 660.
What are the disadvantages of a construction loan?
- The loan amount is set in advance, giving the borrower little flexibility in the event of unexpected costs.
- The entire balance of the loan is due at the end of the construction process.
- You'll pay higher interest rates on a construction loan compared to other loan options.