This service is free and will not affect your credit score. What type of loan is best for building a house? Best for flexible requirements Our take on New American Funding New American Funding offers a large menu of loan products, as well as programs like first-time home buyer assistance, but personalized mortgage rates aren't available on its website. Offers a wide variety of purchase and refinance mortgages, as well as unique buyer assistance programs. Its home equity line of credit can be used for a primary residence or second home. Average rates and fees are on the high side, according to the latest federal data. Personalized mortgage rates are not available on the website without providing contact information. Best for renovation loans Our take on Truist If you want a wide range of loan options from a traditional bank, Truist is worth a look. Its streamlined application process and access to human support can make borrowing easier. Offers a wide range of mortgage options focused on affordability. Convenient online application. Generous grants for qualifying home buyers in select locations. Getting custom rates and applying for mortgage preapproval both require human contact. Customer care leans heavily on phone and in-person service. HELOCs are not available in most states, though home loans are available everywhere in the U.S. except Alaska, Arizona and Hawaii. Best for jumbo construction loans Our take on Flagstar Flagstar Bank stands out for having a wide variety of home loan options, including harder-to-find products. But take note that Flagstar has reduced its mortgage business as part of corporate restructuring. Executives have indicated that the lender will rebuild its home lending operations by focusing on the needs of banking clients. Offers down payment assistance programs to borrowers in qualifying areas. Reported average time to close is 25 days, faster than the national average. Conventional loan terms extend to 40 years, which is unusually flexible. You can't apply for preapproval or prequalification online. Customer service options are limited. Best for variety of loan types Our take on U.S. Bank U.S. Bank offers a broad selection of mortgages, including some niche options. Rates and fees are middle of the road, per federal data. The bank offers helpful tech for rate shopping and live chat, though its online application could be smoother. Wide variety of mortgages, including some harder-to-find types. Experience in construction and renovation loans. Offers up to $17,500 in assistance (income/location requirements apply). Rates shown online don’t reflect your credit score. Contact form interrupts online application before you can complete it. Few mortgage options for borrowers with low/bad credit. Best for online convenience Our take on Guild Mortgage Guild Mortgage offers a wide range of products that may attract nontraditional borrowers, including loans with 0% or 1% down. However, interest rates aren’t published online, making it harder to shop around. Offers a wide range of loans, including harder-to-find products that appeal to nontraditional borrowers. Borrowers can get a mortgage with 0% or 1% down. Borrowers can apply via mobile app. Mortgage rates aren’t posted online. Customer service options are limited. Best for renovation loans Our take on Rate Rate boasts a streamlined application process, with full underwriting in as little as one business day — though for all its online conveniences, you'll still work with a human. Fully underwritten mortgage approval in as little as one day for qualified borrowers. Generous selection of loans, including government-backed, interest-only, jumbo and renovation. Advertises a fixed-rate HELOC that can be funded in as few as five business days. Some affordable loan options have income limits or other restrictions. HELOC requires immediate, full withdrawal of funds, though there is an option to make additional draws. Best for custom homes Our take on PrimeLending PrimeLending stands out for its harder-to-find mortgages, including renovation loans and options for self-employed borrowers, though online rate shopping isn't available. Most likely to appeal to buyers who need help with closing costs or want to finance a fixer-upper. Offers closing cost assistance to some borrowers. Wide variety of loan types, including non-QM loans. Mortgages are available for manufactured homes, including 3D-printed houses. Rates are not posted online. No live chat customer support available. Best for credit union lending

Our take on Alliant Alliant Credit Union allows you to see a wide range of customized mortgage rates without sharing your contact information, and offers competitive loan products for first-time home buyers. Offers a competitive combination of low rates and fees. Mortgage borrowers do not need to become members of the credit union until reaching the closing process. Sample rates are displayed upfront, and it's easy to get detailed, personalized rates without providing any personally identifying information. No mobile app available. Doesn't offer energy-efficient mortgage refinances. Best for borrowers in eligible states Our take on PNC Bank PNC Bank offers a wide selection of loans and refinance options, with a streamlined digital experience and comprehensive rates tool. Solid variety of mortgage types, both standard and harder-to-find. Online rate quotes are informative and easy to customize. Offers down payment grants and no-PMI loans for low-income borrowers. Mobile app has limited mortgage features. In-person service not available in all states. Construction loans are only available in AL, AZ, CA, CO, FL, GA, NJ, NM, NC, OH, PA, SC, TN, TX, VA and WA. Best for all-in-one financing Our take on Northpointe In addition to conventional and government-backed loans, Northpointe Bank’s mortgage portfolio includes rarer offerings like doctor loans, condo loans and investment property loans. However, average fees and rates tend to be comparatively high. Offers mortgages for investment properties. Reported average closing time is faster than many competitors. The lender's combination of rates and fees are on the high side, according to the latest data. Bank’s mobile app isn’t useful for mortgage borrowers. How we chose the best construction loan lenders Lenders reviewed Categories assessed Data points analyzed Types of construction loans Pays for construction, then automatically converts to a standard mortgage when building's done. One loan means only paying closing costs once. Covers only the building phase. After construction, you have to pay off the loan or take out a traditional mortgage. Starting a new mortgage means another round of underwriting and closing costs. Combines funding for major renovations with a purchase or refinance loan. Not exactly a construction loan, since these are used for improving existing properties rather than new builds. Designed for borrowers who plan to manage construction themselves. Lenders generally require credentials and proof of building experience. Construction loans backed by the VA, FHA and USDA are available. Often allow for lower down payments and credit scores. Can be hard to find lenders offering these loans. Is a construction loan harder to get than a mortgage? How construction loans work, step by step Preparation steps 1. Secure your building site 2. Choose a licensed builder 3. Obtain homeowners insurance Getting a construction loan 4. Compare construction loan lenders What the nerds think It pays to shop around 5. Apply for the construction loan 6. Get an appraisal During construction 7. Lender releases funds 8. Borrower makes payments Build or buy? What to consider Higher interest rates and loan costs More complicated approval process See how much house you can afford Compare mortgage rates Calculate your mortgage payment