Wyoming is one of the largest states in the United States but is also the least populous and the least dense state. The state has a total land area of nearly 100,000 square miles, meaning there is plenty of space to build a house using a construction loan if you’re interested in crafting something for you and your family.
Perhaps due to the rural nature of the state, the home building cost for standard grade construction in Wyoming is between $100 to $140 per square foot according to local real estate experts. Meanwhile, home prices are rising in Wyoming according to local media reports.
An increasing number of people have opted to take construction loans to fund the building of new homes. After all, if you intend to splurge on a home, why not build your dream house? Construction loans differ from the traditional mortgages used to buy existing homes. This is because they have a distinct set of rules and requirements for borrowers.
If you’re looking for the best construction loans in Wyoming, we’ve compiled this list to help you find the most suitable for your needs. Keep scrolling to find a comprehensive list of the best construction loans in Wyoming to make an informed decision as you venture into building your dream home.
Advantages of a construction loan in Wyoming
Construction-only loans refer to mortgages with a relatively short term and a higher rate of interest that pay the expense of constructing or renovating a home. They are used to buy the land and pay the architect to draft building plans, acquire permit fees, materials as well as the required labor.
Upon completing building milestones, a construction loan is paid in installments to the contractor. Such construction loans are often paid off once the construction or rehabilitation is complete or to permanent mortgages. In addition, a construction loan can require you to repay just the funds’ interest rates once they are received. You won’t have to make any principal payments until the completion of the project.
But, owing to their complex approval process and extensive requirements, construction loans in Wyoming can be confusing to navigate. For instance, before approving the loan, the lender will likely be more involved in determining the budget and construction timeframe, as well as evaluating building plans and your financial situation.
4 Best Wyoming construction loan lenders
If you’re in the market to build or renovate a home in Wyoming, consider these construction mortgage loans that are available to state residents.
1. BMO Harris
BMO Harris is the 8th largest bank in North America by assets and provides financial services ranging from personal loans and commercial banking to wealth management and investment services. Among these many products, they also provide a construction loan 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. 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 homes 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 Builds
- No Builder Approval Required (must be licensed with General Liability coverage)
- No owner builder construction loans
- 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.
2. Meridian Trust Federal Credit Union
Chartered in Cheyenne in January 1954, Meridian Trust Federal Credit Union operates in several places in Wyoming. As a local community credit union, they could be a good choice for a construction loan if you want to work with someone based in Wyoming.
We contacted Meridian Trust Federal Credit Union to learn more about their construction loan program and this is what we found:
- Terms of 9 months or less are available
- Minimum credit score of 650
- Approval process takes 4 to 6 weeks
- Construction loan amount is 80% of loan to value (LTV) or 80% of cost, whichever is less
- Draws on loan funds are made on a monthly basis based on the draw request submitted to Meridian Trust. Supporting documentation for the draw and inspections is required.
If you’re interested in connecting directly with a loan officer at Meridian Trust Federal Credit Union that specializes in construction loans, we can put you in touch with them directly.
3. US Bank
US Bank is a large lender with a solid construction loan option. They can’t work with owner-builders, investment property, or manufactured homes, but if you fall outside of that category (e.g. a primary residence or a second home), then you may like the options.
We reached out directly to US Bank to get details on their program and this is what we heard back:
- 720 credit score required
- 10% down up to $750,000
- 20% down up to $1.5 million
- 25% down up to $2 million
- Loans up to $10 million are available
- Primary residence and Second homes only
- May use lot purchase as a down payment
- Major renovation home construction loans are available
- 12-24 month Build periods are available
- 30 year fixed One-Time-Close or ARM (5/1, 7/1 & 10/1)
- One-time closing automatically converts to permanent loan at the end of construction
- Interest-only monthly payments during construction
- No prepayment penalty
- No Spec or Investment Builds
- No Pre Starts
If you’re interested in connecting directly with a loan officer at US 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 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
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.
Should you use a Wyoming construction loan to finance a new home build?
Construction loans in Wyoming have several benefits and drawbacks. Since you must continue to pay mortgage payments for your current residence until the completion of the new construction project, it will probably be more manageable if you only make monthly interest payments throughout the construction period.
However, it is important to note that construction loans differ from mortgages, hence the importance of consulting with a construction loan specialist. Look for someone with vast experience and expertise in construction loans to make sure you’re getting competitive rates.
If you want to connect with a construction loan expert, we can match you with someone in Wyoming that has experience in seeing properties from design to building to completion.
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.
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.