Best Construction Loan Lenders in Utah 2026: Top 7 Ranked
Brandon Taylor
Utah Construction Loan Expert | 15+ Years Experience
January 23, 2026
Looking for the best construction loan lenders in Utah? Utah's booming housing market makes it perfect for custom builds. These 7 lenders offer the best rates and terms for building your dream home in UT.
7.25%
Avg Construction Rate
20%
Min Down
$550K
Avg Build Cost
12 mo
Build Timeline
🏆 Top 7 Construction Loan Lenders Utah 2026
U.S. Bank - Best Construction Lender Utah
1,400+ UT builds funded
Why #1:
- 💰 Competitive rates: 7.15%-7.35% APR
- 🏆 Construction-to-permanent loans
- ⚡ One-time close = save on closing costs
- 📍 Strong in Salt Lake City + Provo markets
- 🎯 Up to $2M construction loans
Best For:
Utah builders who want one-time close convenience
🏗️ Utah Construction Loan Types
Construction-to-Permanent Loan (Best)
How it works: One loan that converts to permanent mortgage after build
Pros: One closing, lower costs, rate locked upfront
Cons: Stricter requirements
Best for: Most Utah builders (saves $5K-$10K)
Construction-Only Loan
How it works: Short-term loan (12 months), then refinance to permanent
Pros: More flexible, easier to qualify
Cons: Two closings = higher costs
Best for: Builders with unique situations
📊 Utah Construction Costs by Region 2026
| Region | Cost per Sq Ft | 2,500 Sq Ft Home | 20% Down |
|---|---|---|---|
| Salt Lake City | $220/sq ft | $550,000 | $110,000 |
| Provo | $200/sq ft | $500,000 | $100,000 |
| St. George | $210/sq ft | $525,000 | $105,000 |
| Ogden | $190/sq ft | $475,000 | $95,000 |
✅ Utah Construction Loan Requirements 2026
Basic Requirements
Credit Score:
680+ minimum (720+ for best rates)
Down Payment:
20% minimum ($110K on $550K build)
DTI Ratio:
43% max (36% preferred)
Reserves:
6-12 months PITI in savings
Required Documents
Detailed Plans:
Blueprints + specifications
Builder Contract:
Signed agreement with licensed builder
Cost Breakdown:
Itemized construction budget
Appraisal:
Based on completed value ($800-$1,200)
❓ FAQ: Utah Construction Loans 2026
How does a construction loan work in Utah?
Construction Loan Process:
- Pre-approval: Get approved for construction loan
- Find land: Purchase lot (or use owned land)
- Hire builder: Licensed Utah contractor
- Submit plans: Blueprints + budget to lender
- Appraisal: Based on completed value
- Closing: Loan funds held in escrow
- Draw schedule: Funds released as build progresses
- Conversion: Converts to permanent mortgage
How much down payment for construction loan in Utah?
Utah Construction Down Payment:
- Minimum: 20% ($110K on $550K build)
- Recommended: 25% ($137.5K on $550K)
- Best rates: 30%+ down
Higher down = lower rate + easier approval