5 Best Construction Loans in Maine


Construction loans in Maine are available in a wide array of options depending on the lender you choose and your personal financial situation.

Maine makes me think of lobster rolls, summer along the coast, and skiing in the winter (at places like Sugarloaf and Sunday River). No wonder so many people call the state home and visit each year. As the population of Maine increases, housing prices are inching up according to US News and World Report and many people are considering the benefits of building a new home as opposed to negotiating with sellers on the open real estate market. 

If you’re interested in pursuing a construction loan, you may already own property or be thinking about purchasing property. The good news is that a construction loan can also finance the purchase of land.

So, what’s the difference between a construction loan and a traditional mortgage loan? There’s a lot actually. The rest of the article outlines some of the benefits, disadvantages, and lenders that you might want to consider working with as you pursue construction financing to build your dream home.

Show Me Lenders

Advantages to taking out a construction loan in Maine

Are you planning to build a new home? Well, you’re in luck! A new construction loan is designed specifically for people who are building a home. It’s a great way to get financing for your project, and it comes with some interesting benefits that you should know about.

Here are two of the biggest benefits of getting a new construction loan in Maine:

1) You can start building quickly. When you are approved for a new construction loan, you get the access to the money upfront so that you can start building immediately. A lender will usually set up the payments to be made in draws as each stage of the construction project is finished.

2) You only pay interest during the construction process. Most construction lenders will only charge interest on the part of the loan that has been drawn. No actual principal payments are due until the construction is complete. You’ll still be paying your current rent or mortgage during the building of the house, but you’ll breathe a little easier know that you’ll only have to pay interest on the construction loan amount initially.

Get Quotes for Your Construction Loan

5 Best banks in Maine for construction loans

If you’re ready to check out the top construction lenders in Maine, here are the best options we’ve found through our research.

1. TD Bank

TD Bank is one of the largest banks in the country with over $600 billion in assets, making it the sixth-largest by deposits in the United States. Not surprisingly, TD Bank has a robust construction loan product and should be one that you consider before making your ultimate decision.

We spoke to a TD Bank loan officer who personally closed over $300 million of mortgages last year to learn more about the TD Bank construction loan program. Here are the details:

  • 720-740 FICO credit score desired
  • 20% down required on loans up to 1.5M
  • 30% down required on loans up to 3M
  • One-time close
  • Primary or secondary homes are eligible
  • Fixed interest rates and ARMs are available
  • Purchased lot considered in the down payment
  • No pre-payment penalties
  • Interest rate locked before construction phase begins
  • If land has been owned for at least 6 months, we will lend up to 80% of the appraised value of the entire project.
  • If land has not been owned for at least 6 months, we will lend up to 80% of the land acquisition cost+cost of construction
  • No Condos or Co-Ops. No investment properties.

If you’re interested in connecting directly with a loan officer at TD Bank that specializes in construction loans, we can put you in touch with them directly.

2. Maine Savings Federal Credit Union

Maine Savings Federal Credit Union has over 30,000 members and more than $500 million in assets, making it one of the largest credit unions in Maine. They offer a full range of financial services and personal loans, including with their construction loan product. If you want to build a home with a credit union, you’ll want to consider their product.

We reached out to Maine Savings Federal Credit Union to gather more information about their construction loan product. Here are the details:

  • Up to 90% financing
  • Local Maine lenders
  • Single close construction loans available
  • Cost of land can be included in loan
  • Requires a signed construction loan contract between the member and the contractor that outlines the total construction cost.

If you’re interested in connecting directly with a loan officer at Maine Savings Federal Credit Union that specializes in construction loans, we can put you in touch with them directly.

3. Skowhegan Savings

Skowhegan Savings is one of the oldest banks in Maine, tracing its roots back nearly a century and a half to one of Maine’s original governors. The bank used to focus on loggers, so it’s fitting that in today’s world they are now providing construction loans to help build houses.

We reached out to Skowhegan to learn more about their construction loan product. Here is what they told us:

  • Single close construction loans available
  • Lock in fixed rate at the time of application
  • Up to 95% financing available with private mortgage insurance (PMI)
  • Interest only payments for 12 months (if no PMI)
  • A Skowhegan Savings Bank approved General Contractor is required to oversee and manage the project as budgeted in your contract (containing State of Maine requirements).

If you’re interested in connecting directly with a loan officer at TD Bank that specializes in construction loans, we can put you in touch with them directly.

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 the lending team at Wintrust Mortgage to provide us with details on their construction loan process 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 (First Time Home Buyer), VA (Veterans loans), 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

If you’re interested in connecting directly with a loan officer at Wintrust Mortgage that specializes in construction loans, we can put you in touch with them directly.

5. Bath Savings

Bath Savings has been in business for over 170 years serving the Midcoast and Southern Maine region. Maine has some of the oldest banking institutions in the country! Bath Savings has been helping people build homes for centuries, which is pretty remarkable by itself.

We contacted Bath Savings to learn more about their current construction loan and here are the highlights:

  • One-step home construction loans built right
  • Interest-only payments during period of construction
  • Monthly construction draws in accordance with work completed — keeping your projects on track
  • No additional costs at the end of the construction period
  • No prepayment penalty
  • Optional escrows for taxes and insurance

If you’re interested in connecting directly with a loan officer at Bath Savings that specializes in construction loans, we can put you in touch with them directly.

Does a Maine construction loan make sense for you?

A construction loan is one of the most common types of loans, and it can be a great way to finance large, expensive projects like home renovations or building a new house. But before you decide to get one, it’s important to understand all the details involved in applying for and getting approved for a Maine construction loan. Do they offer online banking? Can you use your home equity? What type of credit card debt do you have?

There are many benefits associated with taking out a construction loan. One of the biggest ones is that these loans can be used for everything from building a home from scratch to renovating your existing place. Another benefit is your ability to create the home of your dreams to your specifications. 

If you’re looking to explore construction loans in other states, check out our national guide to construction loans and get started exploring all 50 states.

Find a Construction Loan Specialist

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.

Save more money than your friends

One email each week covers personal finance, financial independence, investing and other stuff for lawyers that makes you better.