Construction Loan Rates
Compare current construction loan interest rates from leading lenders and understand the factors that affect your borrowing costs.
📊 Rate Disclaimer
Rates shown are estimates based on market data and may vary by lender, location, and individual qualifications. Always obtain official rate quotes from lenders for accurate pricing. Rates updated monthly.
Current Construction Loan Rates
| Lender | Construction Rate | Permanent Rate | Min Down Payment | Key Features |
|---|---|---|---|---|
| Bank of America | 7.25% | 6.85% | 25% |
|
| Wells Fargo | 7.50% | 7.00% | 20% |
|
| US Bank | 7.15% | 6.95% | 25% |
|
| Regions Bank | 7.35% | 7.10% | 20% |
|
| PNC Bank | 7.20% | 6.90% | 25% |
|
Factors Affecting Your Rate
Credit Score
High ImpactScores above 720 get best rates, below 680 may face higher costs
Down Payment
High Impact25-30% down payment typically required, higher down = better rates
Loan-to-Value Ratio
High ImpactLower LTV ratios (70-80%) qualify for better interest rates
Construction Timeline
Medium ImpactShorter construction periods (6-12 months) may get preferred rates
Builder Experience
Medium ImpactLicensed, experienced contractors can help secure better terms
Market Conditions
High ImpactFederal interest rates and economic conditions affect all rates
Rate Shopping Tips
Before You Apply
- ✓Check your credit score and improve if needed
- ✓Save for a larger down payment (25-30%)
- ✓Research and select qualified contractors
- ✓Prepare detailed construction plans and budgets
During Rate Shopping
- ✓Get quotes from 3-5 lenders within 14 days
- ✓Compare APR, not just interest rates
- ✓Ask about rate lock options and periods
- ✓Understand all fees and closing costs
Types of Construction Loans
Construction-to-Permanent
Single closing process with automatic conversion to permanent mortgage.
- • Rate lock during construction
- • Lower closing costs
- • Streamlined process
Construction-Only
Separate construction loan with second closing for permanent financing.
- • Flexibility to shop rates later
- • Two separate closings
- • Higher overall costs
Market Intelligence and Rate Trends
Stay informed about market conditions and interest rate trends that affect construction financing. These authoritative sources provide valuable insights for timing your construction loan application:
- • Federal Reserve - Official monetary policy and interest rate information
- • U.S. Treasury - Government bond yields and economic indicators
- • Mortgage Bankers Association - Industry data and mortgage market analysis
- • Freddie Mac Primary Mortgage Market Survey - Weekly mortgage rate data
Disclaimer: External links are provided for informational purposes only. We do not endorse or guarantee the accuracy of information on external websites.