Blog ·
4 Strong Construction Loan Options in Maine, From Aroostook County to the Coast
In Maine, the house is often the easy part. The harder questions are about the land: a gravel road, a drilled well, a septic design, and, near the water, shoreland zoning rules. Local banks and credit unions handle a lot of Maine's construction lending, and four strong options are Aroostook Savings & Loan, Bath Savings, Oxford Federal Credit Union, and Skowhegan Savings Bank. Each offers a one-closing construction-to-permanent loan for Maine homes.
Disclosure: My Construction Path may be affiliated with, or receive compensation from, lenders featured in this article. Lenders are listed alphabetically, not ranked. Programs and availability change, so confirm details with each lender.
How we chose these lenders
We included a lender only if its own website shows:
- Maine lending, with any service area or membership limits stated
- One closing for construction and permanent financing
- Land options, such as including a land purchase or using land you own
- A described draw, inspection, or builder process
All facts come from official lender pages or reputable third-party coverage.
Comparison at a glance
| Lender | Where in Maine | One closing | Land | Builder & draws |
|---|---|---|---|---|
| Aroostook Savings & Loan | Northern Maine; Presque Isle and Caribou | Yes | Not specified on program page | Self-managed or contractor; periodic inspections |
| Bath Savings | Lincoln, Sagadahoc and Cumberland counties | Yes, one-step | Land loans offered separately | Monthly draws based on work completed |
| Oxford Federal Credit Union | Members in 10 southern and western Maine counties | Yes | Land purchase can be included; land equity counts | Funds released in stages |
| Skowhegan Savings Bank | Maine community bank | Yes, single close | Land purchase can be included | Bank-approved general contractor required |
Aroostook Savings & Loan
Who it fits: Northern Maine borrowers, including those who plan to manage their own build.
Aroostook Savings & Loan's construction-to-permanent loan combines construction and permanent financing in one closing for homes in Northern Maine. It can finance eligible costs for a stick-built or modular home, or qualifying major property improvements, whether you manage the project yourself or hire a contractor.
Get connected with this lender
Notable features:
- Progress-based draws tied to approved draw requests, the project budget, and documented progress
- Periodic inspections confirm the percentage of work completed before funds are advanced
- You're responsible for required building permits and construction insurance
Aroostook Savings & Loan has served the region since 1936, with offices in Presque Isle and Caribou.
Bath Savings
Who it fits: Midcoast and Greater Portland borrowers who want a one-step loan with no added cost at the end of construction.
Bath Savings' one-step construction to permanent loan combines your construction and permanent financing, then converts to a permanent mortgage when the home is complete.
Get connected with this lender
Notable features:
- How interest is handled during the build varies by lender.
- Monthly construction draws based on work completed
- No additional costs at the end of the construction period, and no prepayment penalty
- Optional escrows for taxes and insurance
Bath Savings says lending relationships are normally limited to people with ties to its assessment area of Lincoln, Sagadahoc, and Cumberland counties.
Oxford Federal Credit Union
Who it fits: Members who still need to buy land, or who want to build a modular or manufactured home.
OFCU's construction loan covers construction and your permanent mortgage with a single closing. You don't need to own land before applying, since a land purchase can be included in the loan, and if you already own land the equity may count toward your contribution.
Notable features:
- For a primary residence that's stick-built, modular, or manufactured
- Can also complete a home that's already under construction, or make improvements based on a "to be completed" value
- Funds released in stages; how interest is handled during the build varies by lender
OFCU membership is required and is open to people who live, work, worship, or attend school in Androscoggin, Cumberland, Franklin, Kennebec, Knox, Lincoln, Oxford, Sagadahoc, Somerset, or York counties.
Skowhegan Savings Bank
Who it fits: Borrowers who want a fixed rate locked at application and a bank-vetted builder.
Skowhegan Savings' single close construction loans lock you in at a fixed rate at the time of application, with one closing for the build and the mortgage.
Get connected with this lender
Notable features:
- How interest is handled during the build varies by lender.
- Help purchasing land as part of your construction loan if you don't already own it
- A Skowhegan Savings Bank-approved general contractor must oversee the project under a contract that includes State of Maine requirements
Other Maine lenders to consider
Citizens lists Maine among its construction-to-permanent states, and TD Bank offers a construction-to-permanent loan with a Maine mortgage loan officer listed in Brunswick. Bar Harbor Bank & Trust also offers construction loans; ask about its structure.
Get connected with CitizensGet connected with TD BankGet connected with Bar Harbor Bank & Trust
How to choose a Maine construction lender
- Check the service area first. Bath Savings and OFCU publish county limits, and Aroostook focuses on Northern Maine. Make sure your lot is covered.
- Know the shoreland rules. Under Maine's Mandatory Shoreland Zoning Act, towns regulate land use near great ponds, rivers, coastal wetlands, and certain streams. Your local code enforcement officer is usually the first stop.
- Budget for the site. Wells, septic, driveways, and power runs are real costs on rural Maine land. Make sure they're in your builder's budget.
- Decide who runs the build. Skowhegan requires an approved general contractor, while Aroostook allows you to manage the project yourself.
- Think about home type. OFCU and Aroostook both mention modular homes; OFCU also lists manufactured homes.
- Plan the finish. Ask what's needed to convert to a permanent mortgage after the build, and read our guide to jumbo construction loans for larger coastal projects.
- Building elsewhere in New England? See our guides to Vermont construction lenders and Massachusetts construction lenders.
Frequently asked questions
Which lenders offer one-closing construction loans in Maine?
Aroostook Savings & Loan, Bath Savings, Oxford Federal Credit Union, and Skowhegan Savings Bank all describe one-closing construction-to-permanent loans, and Citizens and TD Bank also lend in Maine.
Can I buy land and build with one loan?
Often, yes. OFCU says land purchase can be included in the construction loan, and Skowhegan Savings can help you buy land as part of the loan.
Can I be my own general contractor in Maine?
Some lenders allow it. Aroostook Savings & Loan says its loan works whether you manage the project yourself or hire a contractor. Skowhegan requires a bank-approved general contractor.
Can I build a modular or manufactured home?
Yes, with some lenders. Aroostook covers stick-built or modular homes, and OFCU lists stick-built, modular, or manufactured primary residences.
Do I need permits before construction starts?
Yes. Aroostook, for example, says you're responsible for obtaining all required building permits and construction insurance, and lakefront or coastal lots may also fall under shoreland zoning.
Find your Maine construction lender
The right Maine lender depends on your county, your land, and your builder. Get connected with a construction lender at My Construction Path to compare construction loan options for your land, budget, and timeline, and see which builder-friendly lenders serve your area.
My Construction Path may be affiliated with lenders featured in this article. Lender programs, eligibility, and service areas change often and vary by location. This article is for general education and is not a commitment to lend. All loans are subject to credit and property approval by the lender.