5 Best Construction Loans in Louisiana


Construction loans in Louisiana are available in a wide variety depending on the bank you select and your financial situation.

Key Terms

  • Louisiana construction loans are available to both individuals and businesses for various types of projects, including new construction, renovations, and remodeling.
  • These loans are typically short-term and have higher interest rates and stricter eligibility criteria compared to traditional home loans.
  • Borrowers can use the loan funds for different purposes such as purchasing land, paying for labor and building materials, and covering other construction-related expenses.

Louisiana is a beautiful state with a rich history and culture. Even after Hurricane Katrina nearly destroyed New Orleans and drove many people from the state, Louisiana’s population only modestly decreased over the last few years. Naturally, many of the people staying in the state are looking to purchase homes, which is having an impact on housing prices.

The median home sales price in Louisiana increased 8.9% last year to $227,500, according to the annual report produced by the Louisiana Realtors Association. With rising home prices and a competitive real estate market, many people turn to construction loans to build a dream house as opposed to haggling with sellers on the open market.

If you’re interested in building a home or renovating an existing property, read on for a better understanding of your construction loan options in Louisiana.

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Top reasons to consider a construction loan in Louisiana

If you’re thinking about building a new home, there are many reasons to consider getting a new construction loan in Louisiana. 

First, it’s an incredible opportunity to build the house of your dreams. If you’ve been dreaming of a custom-built home with all the amenities and features that you want, a construction loan is the best way to make that dream come true. You’ll be able to customize everything from the floor plan to finishes like granite countertops and hardwood floors.

Second, a construction loan gives you complete control over the process and having a bank with a vested interest in the home being built to standards is an additional resource in your pocket.

On the other hand, financing a new construction build can be expensive. You may only need to make interest payments during the construction phase, but you’ll still be responsible for your current mortgage or rent, meaning that you’ll have to stretch a budget to cover both your current living costs plus the interest on the construction loan amount.

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5 Best construction loan lenders in Louisiana

If you’re in the market for building a home in Louisiana, consider these construction loans that are available to state residents.

1. Home Bank

Home Bank is a Louisiana state bank chartered in Lafayette Parish with locations throughout Louisiana and Mississippi. Their roots go back to 1908 when they were chartered as a home building and loan company. Not surprisingly, they are still in the home business, including offering construction loans.

We contacted Home Bank to gather information about their construction loan program. Here’s what we learned:

  • One Closing
  • Fixed rate or adjustable rate options available
  • Upon completion you may have the option to reduce your interest rate, if lower.
  • New Construction with Builder contract – up to 90% LTV
  • New Construction with Self-contracting – up to 80% LTV
  • Purchase or refinance with improvements – up to 80% LTV
  • Jumbo loan options available – up to 80% LTV
  • If you already own your lot, they will use the appraised value of the lot to meet equity requirements when calculating your LTV.

When you’re ready to connect with a loan officer, use our form to quickly match with construction loan programs based on your specific circumstances.

2. Gulf Coast Bank & Trust

Gulf Coast Bank & Trust has branches in New Orleans and Baton Rouge but serves the wider Louisiana area. In addition to offering the typical suite of financial products, the bank has a construction loan for those looking to build a new home.

We reached out to Gulf Cost Bank & Trust to learn more about their construction loan and here is what they told us:

  • Fixed rate options  available
  • Our one-time close option features only one loan and the ability to lock in your permanent rate from the beginning.
  • The construction stage is an interest-only loan payment on the funds as they are disbursed.
  • Once construction is completed, the loan will modify to a permanent loan with principal and interest monthly payments and the official loan term will begin.
  • Our two-close transaction includes two separate loans: one interest-only loan for the construction period and then a permanent mortgage once the home is completed.
  • Variable construction periods. Extensions available if your construction project takes long, though you will have to pay applicable fees.
  • Can purchase the lot with the construction loan.
  • You may be able to use the equity of the land you own towards the down payment of the construction loan.

When you’re ready to connect with a loan officer, use our form to quickly match with construction loan programs based on your specific circumstances.

3. GMFS Mortgage

GMFS Mortgage is a non-bank mortgage lending company in Louisiana. Sometimes a non-bank can be the best choice and GMFS has a construction, remodeling and renovation home loan option.

We contacted GMFS Mortgage to gain a deeper understanding of their construction loan product and here are the highlights:

  • Min. Down Payment = 5% for primary residence. Land value may be used as a down payment on a refinance transaction.
  • Interest rate is capped on permanent loan
  • Interest only loan during construction for up to 12 months, then modifies to 15 or 30 year fixed rate loan once home is complete
  • Eligible for Primary residence or Second home
  • Borrower chooses contractor, subject to GMFS Mortgage verification
  • One (1) closing with a simple modification process finalizes your rate and payment once construction completed

When you’re ready to connect with a loan officer, use our form to quickly match with construction loan programs based on your specific circumstances.

4. Wintrust Mortgage

Wintrust Mortgage is one of the top 20 bank-owned retail mortgage originators in the country that originates in excess of $4 billion in loans annually in all 50 states. 

Recently we asked Wintrust Mortgage to provide us with details on their construction loan and this is what they said:

  • One-Time Closing. Only pay the closing cost once
  • Lock in your rate upfront and avoid interest rate risk
  • FHA, VA, and Conventional options
  • 0% Down up to $822,375 (VA ONLY)
  • 3.5% Down up to FHA County Limits ($356,362-822,375) 
  • 10% Down on Second homes
  • FICO 680+
  • Loans must include building no Lot/Land Loans 
  • Maximum of 10-acres per build site
  • Stick Built and Modular Homes ONLY
  • NO log homes or metal homes (barndominium)
  • Tear Down and Rebuilds do qualify
  • No self-build or owner builders. The builder must be approved. 
  • Does Not allow ADUs (Accessory Dwelling Unit – Granny Flat/Garage Conversions/Basement)
  • Now lending in all 50 States

When you’re ready to connect with a loan officer, use our form to quickly match with construction loan programs based on your specific circumstances.

5. Metairie Bank

Metairie Bank was started on February 15, 1947 and is now the oldest and largest commercial bank headquartered in Jefferson Parish. While they only service a local area, they can work with residences of Orleans, St. Charles, St. Tammany, St Bernard and St. John.

We reached out to Metairie Bank to learn more about their construction loan. Here are the key terms and advantages:

  • Can provide financing from $100,000 to $4,000,000 through a one-closing construction loan where you can avoid the cost and hassle of closing twice.
  • This type of loan features low closing costs which are paid only once and provides an interest rate which is locked-in at the time of application for both the construction and permanent portion of the loan.
  • Once the loan is closed, construction can begin. Metairie Bank typically structures for a 5 draw payment system, which allows for periodic payments at various stages of construction completion.
  • During the construction period, only interest payments will be required.
  • The typical construction period is from 6 to 12 months.
  • Once the home is completed, the construction loan will convert to a permanent loan and full principal, interest, and escrow payments will be required based on the loan term you selected.

When you’re ready to connect with a loan officer, use our form to quickly match with construction loan programs based on your specific circumstances.

Should you pursue a Louisiana construction loan?

You’ve been thinking about building a dream home for months, and now it’s finally time to move forward. But before you break ground, take a moment to think about whether or not a construction loan and building a new house is right for you.

On one hand, you’ll gain a lot of control over the process and be in a position to build something specific to the needs of your family. On the other hand, building a house is a big project and likely won’t be complete for 6-12 months. Can you afford to make interest payments on the construction loan while you’re paying rent or your current mortgage?

Looking for a construction loan in a different state?

Click on another state to find the best construction loan lenders in that state.

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Joshua Holt

Joshua Holt is a licensed mortgage loan originator (NMLS #2306824) and founder of Biglaw Investor. His mortgage expertise lies in the areas of professional mortgage loans, particularly for lawyers, doctors and other high-income professionals. Prior to Biglaw Investor, Josh practiced private equity mergers & acquisition law for one of the largest law firms in the country.

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