3 Best Construction Loans in Wyoming
Key Terms
- Construction loans in Wyoming offer unique opportunities to build custom homes on vast lands with rising real estate costs.
- These loans cover costs from land purchase to labor, and they require only interest payments during construction.
- Due to their complex nature, consulting with experienced specialists can ensure competitive rates and successful project completion.
With nearly 100,000 square miles of open land, Wyoming presents vast opportunities for building your dream home using a construction loan. As one of the largest states with a low population density, it offers ample space to craft a personalized living environment 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 individuals have opted to take construction loans to finance the building of new homes. After all, if you intend to splurge on a residence, why not build your own dream house? Construction loans differ from the traditional mortgages used to acquire existing homes. This is because they have a distinct set of rules and prerequisites 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.
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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.
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3 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. 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.
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. 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
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. 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.
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.
Looking for a construction loan in a different state?
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