Best Mortgage Lenders for New Construction 2026
Building or buying a brand-new home? Construction financing is completely different from a standard mortgage. Here are the top 7 lenders — and what the builder's preferred lender isn't telling you.
C2P loans · FHA & VA new build · One-time close · No hard pull to compare
⚡ Key Difference: New Construction vs Standard Purchase
A standard mortgage closes once when you buy. New construction involves 2 phases: (1) construction financing (interest-only draws as builder gets paid) and (2) permanent mortgage. A one-time close / construction-to-permanent loan combines both into a single closing — saving $3,000–$6,000 in closing costs. Not all lenders offer this.
3 Types of New Construction Financing Explained
One-Time Close (C2P)
Best for: To-be-built homes
Single closing covers construction + permanent mortgage. Rate locked from day one. Construction draws paid directly to builder. Interest-only during build.
- ✓1 closing = save $3K–$6K
- ✓Rate locked from start
- ✓FHA & VA versions available
Two-Time Close
Best for: Complex custom builds
Construction loan closes first (higher rate). When home is complete, you get a permanent mortgage (second closing). More flexibility but two sets of closing costs.
- ✓More lender options
- ✓Can shop permanent rate after build
- ✓Good for custom/luxury builds
Spec Home Purchase
Best for: Already-built new homes
Standard mortgage on a brand-new home the builder has already completed. Works exactly like a regular purchase. 30–45 day close. All standard lenders qualify.
- ✓Normal mortgage process
- ✓No construction phase
- ✓Full range of loan types
Top 7 New Construction Mortgage Lenders in 2026
MRC (Mortgage Rate Compare)
🏆 BEST MARKETPLACERate from
From 6.25%
Min Down
3–20%
Min Credit
580+
Best for
Compare 50+ construction lenders simultaneously
Rocket Mortgage
⚡ FASTEST DIGITALRate from
From 6.50%
Min Down
3.5–20%
Min Credit
580+
Best for
Fast digital process for spec homes
Veterans United
⭐ BEST VARate from
From 6.0%
Min Down
0%
Min Credit
620+
Best for
VA one-time close construction loans
Nationwide (via broker)
🏗️ BEST C2PRate from
From 6.75%
Min Down
5–20%
Min Credit
680+
Best for
True construction-to-permanent loans
Guild Mortgage
✅ BEST FHA NEW BUILDRate from
From 6.50%
Min Down
3.5%
Min Credit
580+
Best for
FHA construction-to-permanent specialists
Chase
🏦 BEST JUMBO NEW BUILDRate from
From 6.25%
Min Down
10–20%
Min Credit
720+
Best for
Jumbo new construction over $766K
Local credit unions
💰 BEST LOCAL RATESRate from
From 6.0%
Min Down
5–20%
Min Credit
640+
Best for
Best rates for in-market buyers
⚠️ The Builder's Preferred Lender: Read This First
Builders push hard to use their in-house or preferred lender. They offer closing cost credits of $5,000–$25,000 — but only if you use their lender. Here's the truth:
What builders don't say
- ✗Builder lender rates can be 0.25%–0.75% higher
- ✗On $400K, 0.5% higher = $43,000 more over 30 years
- ✗Closing cost credit of $10K ≠ $10K of real value if rate is higher
- ✗Builder lenders don't have to compete for your business
The smart move
- ✓Get an outside lender's Loan Estimate first
- ✓Compare APR (not just rate) between builder lender and outside lender
- ✓Calculate total cost: rate + fees over YOUR planned hold period
- ✓Negotiate: ask builder to match outside lender's rate
📚 Related Guides
Frequently Asked Questions
What is a construction-to-permanent loan?
A construction-to-permanent loan (also called a one-time close or C2P loan) finances both the building phase and the permanent mortgage in a single loan with one closing. During construction, you pay interest only on drawn amounts. When the home is complete, it automatically converts to a standard mortgage. This saves one closing cost ($3,000–$6,000) vs a two-close approach.Check your personalized rate →
Should I use the builder's preferred lender?
Not automatically. Builders often incentivize their preferred lenders with closing cost credits ($5,000–$20,000) tied to using their financing. However, the rate and fees from builder lenders are sometimes higher, negating the incentive. Always get a Loan Estimate from an outside lender to compare the true total cost. The incentive is sometimes real — but verify the math.Check your personalized rate →
Can I use an FHA or VA loan for new construction?
Yes. FHA construction-to-permanent loans are available through FHA-approved lenders. VA one-time close loans exist for eligible veterans. Both require the builder to be VA/FHA approved and the home to meet inspection standards. The VA one-time close is particularly powerful — 0% down on a brand-new home.Check your personalized rate →
How long does a new construction mortgage take to close?
New construction mortgage timelines vary. For spec homes (already built): 30–45 days like a normal purchase. For to-be-built homes: 6–24 months depending on build time. Rate lock for extended construction periods costs extra (extended locks of 180–360 days typically cost 0.25%–1% upfront).Check your personalized rate →
What credit score do I need for a new construction loan?
Most conventional construction loans require 680–720+ credit. FHA construction loans accept 580+ (with 3.5% down) or 500–579 (with 10% down). VA construction loans typically require 620+. A higher credit score gets you better rates and may be required by some builders.Check your personalized rate →
Don’t sign with the builder’s lender yet
Get an outside Loan Estimate first. Takes 60 seconds. Could save you $40,000+ over the life of the loan vs the builder’s preferred lender.
Written by
David Rodriguez
New Construction & Mortgage Specialist · 14 years experience
David Rodriguez has guided hundreds of buyers through new construction financing — from one-time close construction loans to builder lender negotiations. His analysis has helped buyers avoid paying an average of $32,000 extra by choosing independent lenders over builder-preferred financing.
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Compare Construction Lenders — Free →50+ lenders · C2P, FHA, VA, Conventional · No hard credit pull