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    What lenders do construction loans?

    Updated October 20, 2026

    Key takeaway

    There is no agreed list of named lenders. Gemini and Google AI Mode both name TD Bank, U.S. Bank and Citizens Bank, while ChatGPT and Copilot give local names tied to a place. Engines agree that banks, credit unions and mortgage lenders all offer construction loans, and that construction-to-permanent loans are common.

    Mostly agree

    TD Bank and U.S. Bank offer construction loans

    Credit unions and local banks are a good place to start

    Where they differ

    Which lenders are named

      Verdict

      The engines agree on the types of lender, banks, credit unions and mortgage companies, but not on names. Citizens Bank is the one name ChatGPT, Gemini and Google AI Mode share, and Copilot lists only local Florida mortgage lenders.

      What engines actually searched

      The sub-queries each engine actually searched before answering.

      Cited, but not mentioned

      4 sites cite this answer without naming anyone

      Full responses

      5 of 5 engines that answered. Full stored text as captured, with dashes shown as hyphens. Nothing is summarised.

      ChatGPT3,484 characters · October 15, 2026

      There are several types of lenders that offer construction loans, depending on whether you're building a primary residence, a second home, an investment property, or a multifamily building.

      If you're looking in the Poughkeepsie / Hudson Valley, New York area, I'd start with local banks and credit unions, then compare them with larger mortgage lenders.

      Types of lenders that offer construction loans

      • Local banks and credit unions - Often a good starting point for custom homes, vacant land, and construction-to-permanent financing.
      • Mortgage lenders - May offer one-time-close loans that combine construction financing and your permanent mortgage.
      • National banks - Can be worth checking for larger projects, depending on your eligibility and location.
      • Portfolio and private lenders - May work with borrowers who have unusual properties, investment projects, or more complex financing needs.

      Construction loan lenders to contact

      These are specific lenders with published construction-loan programs or local construction-lending services.

      1. Mid-Hudson Valley Federal Credit Union (MHVFCU)

      Offers ground-up home construction loans with staged funding and construction-to-permanent financing. A strong first call for a local residential build. Construction Loans

      Website: Construction loans

      1. TEG Federal Credit Union

      Offers construction-to-permanent financing with one closing, interest-only payments during construction, and automatic conversion to a mortgage. TEG Federal Credit Union

      Phone: 845-452-7323

      Website: TEGFCU

      1. Webster Bank

      Offers construction-to-permanent financing for new homes, major renovations, and projects where you're purchasing land or already own it. Construction Mortgage: Flexible Rates & Terms

      Phone: 877-647-5137

      Website: Construction mortgage

      1. NBT Bank

      Offers construction draw loans and construction end loans, with published programs for primary and second homes. Construction Mortgage Loans

      Website: NBT construction mortgages

      1. Wallkill Valley Federal Savings & Loan

      A local community lender advertising one-closing construction loans. Contact them to confirm current eligibility, property requirements, and terms.

      Phone: 845-795-6160

      1. Citizens Bank

      Offers construction-to-permanent financing and specialized financing for larger residential projects. Its private banking division also handles certain investment and multifamily construction projects. Construction-to-Permanent Loan | Building a HomeConstruction Lending

      Phone: 800-288-5569

      Website: Build a home with Citizens

      Which kind of construction loan do you need?

      The best lender depends heavily on what you're building. Tell me which situation fits you, and I can narrow this down to lenders that are most likely to finance your project.

      Gemini logo Gemini7,023 characters · October 15, 2026

      Finding the right lender for a construction loan depends on the type of build you are planning, your financial situation, and whether you want a one-time close (construction-to-permanent) or a two-time close (separate construction loan and permanent mortgage).

      National banks, regional banks, credit unions, and specialized mortgage companies all offer construction financing.

      1. Major National and Regional Banks

      Traditional big banks are popular choices because they often offer seamless transitions from the construction phase into a long-term permanent mortgage.

      2. Specialized National Mortgage Lenders

      These non-bank lenders frequently provide robust digital tools, flexible underwriting, and deep experience handling builder approvals and draw schedules.

      3. Credit Unions and Local Community Banks

      • Local Credit Unions (e.g., Connexus Credit Union): Local credit unions or community banks are often some of the best places to look. Because they keep many of their loans in-house rather than selling them to secondary markets, they can sometimes offer more flexible underwriting, lower fees, or localized knowledge about regional builders. Best Construction Loan Lenders – Forbes Advisor

      4. Government-Backed Construction Lenders

      If you need a lower down payment, look for lenders approved to offer government-backed builds:

      Tips for Choosing a Construction Lender

      1. Ask for a "One-Time Close": This rolls your construction loan and your permanent mortgage into a single closing, saving you money on closing costs and locking in your permanent rate early. Construction loans | Home building loans - U.S. Bank

      2. Check Builder Approval Requirements: Lenders typically require your contractor to be licensed, insured, and vetted. Check with the lender early to ensure your chosen builder is already approved or willing to go through their approval process. Top Lenders for One-Time Close Construction Loans (2025 Review)Top Lenders for One-Time Close Construction Loans (2025 Review)

      3. Understand the Draw Schedule: Ensure you understand how the lender releases funds to your builder at different milestones of the construction process.

      Are you looking to build a primary residence, a vacation home, or tackle a major renovation project? Sharing your preferred location or credit score range can help narrow down the best options for you.

      Google AI Mode2,049 characters · October 15, 2026

      National banks, regional banks, local credit unions, and specialized mortgage companies all offer construction loans to finance building or major remodeling projects. Where to go for Construction Loan? : r/HomebuildingConstruction loans | Home building loans | U.S. BankBest Construction Loan Lenders of 2026

      Types of Lenders That Offer Construction Loans

      • Traditional National and Regional Banks: Major financial institutions like U.S. Bank, TD Bank, Citizens Bank, and Flagstar Bank offer robust construction-to-permanent or stand-alone construction programs. They often have higher lending caps and extensive experience managing progressive builder draws.
      • Credit Unions and Local Community Banks: Local institutions frequently provide competitive rates and more flexible, relationship-based underwriting. They are often deeply familiar with local zoning, regional building costs, and area contractors.
      • Specialized Mortgage Lenders & Brokers: Companies such as New American Funding or Guild Mortgage cater to unique qualification criteria, including lower credit score minimums, FHA/VA/USDA construction loans, or extended rate locks. Mortgage brokers can also shop multiple wholesale lenders on your behalf. [CNBC +1]
      • In-House Builder Financing: Some large production home builders feature captive or preferred lender partnerships that streamline the construction and permanent financing process directly through their own corporate channels.

      If you'd like, let me know:

      • What type of project you are planning (custom build, renovation, or buying a lot)
      • Your preferred loan structure (one-time close vs. standalone)

      I can help you narrow down the best lender options for your situation.

      Perplexity1,075 characters · October 20, 2026

      Construction loans are offered by banks and credit unions, especially local and regional lenders. Examples include U.S. Bank, Fifth Third, TD Bank, Citizens Bank, Flagstar, and Movement Mortgage; availability and loan types vary by location.(usbank.com)(53.com)(cnbc.com)(forbes.com)

      For a commercial project, banks, credit unions, online lenders, and private lenders may also offer construction financing.(nerdwallet.com)

      Copilot logo Copilot5,256 characters · October 15, 2026

      Several mortgage lenders in your area offer construction loans, including Ideal Lending LLC, Palm Beach Mortgage Group, and Monroe Funding Corp. These lenders specialize in financing new builds and can guide you through the process.

      🏦 Local Lenders Offering Construction Loans

      LenderLocationRatingSpecialtyPhone
      Ideal Lending LLC5589 Okeechobee Blvd STE 101, West Palm Beach, FL⭐ 5.0 (348 reviews)Mortgage lender, construction loans561-202-8406
      Palm Beach Mortgage Group, Inc.1760 N Jog Rd #160, West Palm Beach, FL⭐ 4.9 (237 reviews)Mortgage lender, construction financing561-478-4780
      Monroe Funding Corp12161 Ken Adams Way Ste L10, Wellington, FL⭐ 5.0 (46 reviews)Hard money loans, construction projects954-816-0388
      CrossCountry Mortgage – Ryan Brown Team4365 Northlake Blvd, Palm Beach Gardens, FL⭐ 4.9 (464 reviews)Mortgage lender, flexible loan options561-253-1807
      Renaissance Home Loans10205 Southern Blvd, Royal Palm Beach, FL⭐ 4.9 (72 reviews)Mortgage lender, new construction loans888-753-5057

      Ideal Lending LLCPalm Beach Mortgage Group, Inc.Monroe Funding Corp - Florida Hard Money LoansCrossCountry Mortgage, LLC Ryan Brown Team

      Use ⌘ + scroll to zoom the map

      Use two fingers to move the map

      © 2026 TomTom

      • Ideal Lending LLC

      Mortgage lender

      5.0 (348)

      Closed · Opens 9 AM

      (561) 202-8406

      5589 Okeechobee Blvd STE 101, West Palm Beach, FL 33417

      DirectionsWebsite

      • Palm Beach Mortgage Group, Inc.

      Mortgage lender

      4.9 (237)

      Closed · Opens 8:30 AM

      (561) 478-4780

      1760 N Jog Rd #160, West Palm Beach, FL 33411

      DirectionsWebsite

      • Monroe Funding Corp - Florida Hard Money Loans

      Mortgage lender

      5.0 (46)

      Open 24 hours

      (954) 816-0388

      12161 Ken Adams Way Ste L10, Wellington, FL 33414

      DirectionsWebsite

      • CrossCountry Mortgage, LLC Ryan Brown Team

      Mortgage lender

      4.9 (464)

      Closed · Opens 8 AM

      (561) 253-1807

      4365 Northlake Blvd, Palm Beach Gardens, FL 33410

      DirectionsWebsite

      🔑 Key Considerations Before Choosing a Construction Loan

      • Loan Type: Some lenders offer construction-to-permanent loans , which convert into a standard mortgage after the build is complete. Others provide short-term financing requiring refinancing later.

      • Down Payment: Construction loans often require 20–25% down due to higher risk.

      • Disbursement Schedule: Funds are released in stages (called “draws”) as construction progresses. Make sure the lender’s schedule aligns with your builder’s needs.

      • Interest Rates: Typically higher than traditional mortgages, but some lenders allow interest-only payments during construction.

      • Flexibility: Hard money lenders (like Monroe Funding Corp) may offer faster approvals but at higher rates compared to traditional banks.

      ⚠️ Risks & Challenges

      • Cost Overruns: Construction projects often exceed budget. Ensure your loan has flexibility for unexpected expenses.

      • Approval Complexity: Lenders require detailed plans, permits, and builder contracts before approval.

      • Market Conditions: Rising interest rates or delays in construction can increase costs significantly.

      👉 If you’re planning a new build in Westlake or nearby, I’d suggest starting with Ideal Lending LLC or Palm Beach Mortgage Group for traditional mortgage-backed construction loans. If speed and flexibility matter more than cost, Monroe Funding Corp (hard money lender) could be a fit.

      Would you like me to compare construction-to-permanent loans vs. stand-alone construction loans so you can see which structure might suit your project better?