5 Best Construction Loans in West Virginia


Construction loans in West Virginia are available in a wide variety of options to suite your project and personal finance situation.

West Virginia got its start in 1863 as a breakaway state from Virginia (hence the name, West Virginia), and played a key role as a border state during the Civil War. Today the Mountain State is home to more than 1.7 million people, many of which are looking to buy property.

The Kanawha Valley Board of Realtors in West Virginia reports that the median home price is $160,000, making homeownership significantly cheaper than other parts of the country. On the other hand, it’s also significantly cheaper to build a home in West Virginia with local real estate experts stating that the cost per square foot can be as low as $90.

For those reasons, many borrowers are turning to construction loans versus home loans as a way to finance their dream home, knowing that they can get something custom built for a reasonable price that will exactly match the needs of their family. 

Keep reading to learn more about the benefits of getting a new construction loan in West Virginia and see the best lenders we found in the state during our research.

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Benefits of a new construction loan in West Virginia

New construction loans can provide you with many benefits. Since they provide financing up front for your entire construction process, you won’t need to sell your current home before getting the financing you need. This allows you to continue living in your current home while the new home is being built.

Short-term construction loans also generally only require interest payment during the construction phase, which will let you balance your existing monthly living expenses with the additional costs of building a home.

One disadvantage of construction loans is that the building process takes significant time as compared to buying an existing residential property, so you’ll want to make sure you are ready for the commitment and have the proper team in place before you take out a construction loan.

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5 Best construction loan lenders in West Virginia

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

1. Fifth Third Bank

Fifth Third Bank is one of the largest banks in the nation with over $169 billion in assets. Its name is derived from a merger in 1909 between Third National Bank and Fifth National Bank. Not surprisingly, they offer real estate loans and construction loans throughout the midwest, including to those of you in West Virginia.

We contacted Fifth Third Bank to get details on their construction loan and this is what they told us:

  • Available for the construction of a single family home
  • Fixed rate and ARM construction loans available
  • Low rates during construction
  • Conforming and Jumbo Loan amounts available
  • One-time closing fee
  • Interest-only payments during construction
  • Land purchase can be included in costs

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

2. Clear Mountain Bank

Clear Mountain Bank is a locally owned community bank serving north-central West Virginia and western Maryland. If you’re looking for a local lender in West Virginia, this could be the bank for you.

We contacted Clear Mountain Bank to learn more about their construction loan and here is what we found:

  • Interest only payments during construction phase
  • Automatically converts to permanent financing
  • No pre-payment penalties
  • 13 branch locations throughout North Central West Virginia and Oakland, Maryland, we are conveniently situated to offer mortgage loans and refinancing for Monongalia County, Preston County, Marion County, Harrison County, Taylor County, Doddridge County, Wetzel County, and more.

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

3. BMO Harris

BMO Harris is the 8th largest bank in North America by assets and provides financial services ranging from personal money loans and commercial banking to wealth management and investment services. Among these many products, they also provide a construction loan option for those looking to build or renovate a home.

We spoke directly with a loan officer at BMO Harris to learn more about their construction loan program and were able to get quite a lot of details on their loan terms. Here is what you need to know:

  • 700 Minimum credit score required
  • 10% down up to $1M loan amount (No PMI…720+ credit score required)
  • 20% down up to $2M loan amount
  • 30% down up to $3M loan amount
  • 35% down up to $4M loan amount
  • 40% down up to $5M loan amount
  • 45% down over $5M+ loan amount
  • 10% of the loan amount required for reserves
  • Primary residence and Second home occupancy only (1 unit only)
  • Ground-up or tear-down construction utilizes Loans-to-Cost
  • Renovation utilizes As-Completed Value
  • 12-24 month construction periods are available 
  • 30/20/15/10 Fixed or ARM (5/6, 7/6 & 10/6) available
  • One-time closing automatically converts to permanent financing at the end of construction
  • Only 1 appraisal needed
  • 90 day lock same as 30 day pricing
  • Relationship rate discounts are available
  • Interest-only payments during construction
  • No prepayment penalty
  • No Spec or Investment Property Builds
  • No Builder Approval Required (must be licensed with General Liability coverage)
  • No owner builder
  • No Pre-starts
  • No Modular, Mobile for Manufactured homes

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

4. Jefferson Security Bank

Jefferson Security Bank is a West Virginia state-chartered bank that traces its roots all the way back to 1869. Still a local community bank, they offer a large array of financial services from personal to business to mortgage lending, including construction loans.

We contacted Jefferson Security Bank to get some details on their construction loan and this is what they said:

  • Our construction loans are locally approved, financed, and serviced.
  • Construction to permanent loans available.
  • Adjustable Rate Mortgage (ARM) products available.
  • One closing to save on closing fees.

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

5. 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 financing 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, 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.

Does a West Virginia construction loan make sense for you?

A construction loan can be a great way to fund your home renovation or the construction of a new home, but it’s not for everyone. Here are some things to consider before taking out a construction loan.

Is your credit score high enough? You’ll need fairly good credit to qualify for a home construction loan. If you don’t have good credit, then you may want to wait until you’ve built up some history and improved your credit before applying.

Do you have enough cash on hand? You’ll need a good chunk of cash in savings or investments to cover the down payment and closing costs associated with taking out the loan. The amount varies depending on the lender, but it’s usually around 20%.

All things considered, a West Virginia construction loan is a great way to get the funding you need to build the home of your dreams while also keeping your costs down and maximizing your potential home equity. 

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.

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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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