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.
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.
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.
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).
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.
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.
Compare New Construction Lenders Before You Sign
Don't commit to the builder's lender before comparing. Get competing Loan Estimates in 60 seconds — no credit impact — and save thousands.
Compare Construction Lenders — Free →50+ lenders · C2P, FHA, VA, Conventional · No hard credit pull