Go-To List of 10 Construction Loan Banks for Fixer Uppers and Restoration Projects
So you found the one—a peeling-paint beauty listed for the price of a used minivan—and you’re already naming the chickens that will one day roam the backyard. But let’s be real: unless you’re swimming in cash (teach us your ways), you’re going to need a construction loan to make that dream happen.
A traditional mortgage often won’t work for houses that need major repairs before move-in. That’s where construction loans come in—they help you buy and fix your Cheap Old House.
We’ve rounded up 10 Construction Loan Banks that are especially suited for fixer-uppers, restoration projects, and people who know the difference between plaster and drywall (or are about to find out).
Our current project, purchased for just $27,000 and being restored and renovated for a family member.
What is a Construction Loan?
A construction loan is short-term financing that covers the cost of building or renovating a home. In your case, it’s that magical thing that lets you buy a $30K house and gives you the funds to bring it back to life.
Many banks offer a “construction-to-permanent” loan, which means you only go through one closing—and the loan converts to a traditional mortgage after renovation is complete.
10 Banks with Construction Loan Products
These banks actually get what you’re doing—and have loan programs to help you do it:
1. U.S. Bank
Nationwide coverage. Offers construction-to-permanent loans. Contact U.S. Bank or call 888-291-2334.
2. Wells Fargo
One of the largest construction loan lenders in the U.S. Offers rate-lock options during the building phase. Find a loan officer.
3. PNC Bank
Great for lot loans and full construction packages. Available in many U.S. states. Call 1-877-BUS-BNKG or contact PNC here.
4. TD Bank
Popular in the Northeast and Mid-Atlantic. Offers construction-to-permanent options. Call 1-866-325-4516 or find a loan officer.
Nationwide lender with flexible credit requirements. Offers FHA, VA, and Conventional one-time close loans. Call 800-450-2010 ext. 7100 or email [email protected]
6. Truist Bank
Strong presence in the Southeast and Mid-Atlantic. Offers construction-to-permanent loans with flexible terms. Call 855-257-4040 or schedule a consultation.
Transparent rates and terms. Offers both construction and renovation loans. Call 855-372-5626 or find a loan advisor.
Offers interest-only payments during construction. Requires a minimum 20% down payment. Call 866-351-5353 or connect here.
Great option for many states (though not all). Offers personalized guidance and one-on-one service. Visit their mortgage page for more info.
10. Bank OZK
A big player in construction lending, especially in the Southeast. Known for large project lending but also supports residential. Find your local branch.
How a Construction Loan is Transforming Our Project
Before
After Paint and Adding the Corbels back on.
Wet Damp Basement Before
Basement After Concrete and new posts.
What to Know Before You Apply
Ask Questions
Is this a construction-to-permanent loan or a stand-alone construction loan?
What is the minimum down payment required?
Do you offer interest-only payments during the construction phase?
Can I use my own contractor, or do you have an approved list?
How are loan disbursements (draws) handled during the build?
What are the credit score and debt-to-income requirements?
Eligibility Tips
Most banks require a detailed budget, plans, and a licensed contractor
You’ll need a credit score of 620+, though some lenders require higher
Expect a 20% down payment, though some FHA/VA programs allow for less
Keep your finances tidy—lenders like stability
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Use Our Renovation Worksheet
Use the same exact spreadsheet we’re using to estimate costs on our $27K fixer-upper—including materials, labor, and “OMG we forgot the plumbing again” columns.
[TKTK THIS NEEDS TO BE WORKED OUT DM us “WORKSHEET” to get early access to our full Budget Guide!]