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4 Strong Construction Loan Options in Massachusetts, From Metro Boston to the Cape
Massachusetts construction projects tend to be either expensive, complicated, or both: tight suburban lots near Boston, gut renovations of older homes, and Cape builds that hinge on septic approvals. Four strong construction loan options are Cape Cod 5, Citizens, Needham Bank, and TD Bank. Each offers a single-closing construction loan that becomes your permanent mortgage when the work is done.
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.
What we looked for
A lender made this list only if its own website shows:
- Massachusetts lending for residential construction or major renovation
- One closing for the construction and permanent phases
- A clear draw and inspection process
- Support for renovations or partly built homes, where stated
Facts come from official lender pages or reputable third-party coverage.
Side-by-side comparison
| Lender | MA presence | One-time close | Renovation | Builder & draws |
|---|---|---|---|---|
| Cape Cod 5 | Cape Cod-based bank | Yes, one-step financing | Rehabilitation of an existing home | Advances after site inspection; dedicated servicing rep |
| Citizens | Construction-to-permanent program offered in MA | Yes | Yes, including teardowns | Inspection before each draw |
| Needham Bank | Needham-based bank | Yes | Significant expansions or remodels; partly built homes | How interest is handled during the build varies by lender. |
| TD Bank | Loan officers in Boston and nearby suburbs | Yes | Yes | Inspection at each draw; builder review |
Cape Cod 5
Who it fits: Borrowers building or rehabbing on the Cape who want hands-on construction servicing.
Cape Cod 5's construction loan offers one-step financing for building a new home or rehabilitating an existing one. After closing, each borrower is assigned a designated Construction Loan Servicing representative who handles inspections, disbursements, and questions.
Get connected with this lender
Notable features:
- Loan advances are based on completed work verified by a site inspection
- Funds are transferred into a Cape Cod 5 checking account you open for the project
- Builder invoices can help show progress, but they don't replace the property inspection
- Its FAQ covers modular homes built off-site and delivered to your lot
Citizens
Who it fits: Borrowers anywhere in the state who want one program for a new build, renovation, or teardown.
Citizens' Construction-to-Permanent Financing program combines the construction or renovation loan and permanent mortgage into a single closing, with flexible lot options. How interest is handled during the build varies by lender. Its mortgage disclosures list Massachusetts as a construction-to-permanent state.
Get connected with this lender
Notable features:
- Inspection before each construction draw
- You'll provide your builder contract and plans and specifications with the application
- CNBC Select named Citizens one of its best construction loan lenders
Citizens lists cooperatives and investment properties as ineligible.
Needham Bank
Who it fits: Metro West borrowers with a large project, a partly built home, or a major expansion.
Needham Bank's Construction-to-Permanent Mortgages use one application and one closing. When the home is complete, the loan automatically converts to a conventional mortgage. How interest is handled during the build varies by lender.
Get connected with this lender
Notable features:
- Designed for building on an open lot, getting a mortgage on a partially constructed home, or significantly expanding or remodeling an existing home
- Choice of fixed and adjustable rates with a dedicated lender
- Needham says borrowers can lean on its more than 130 years of construction expertise
TD Bank
Who it fits: Greater Boston borrowers who own their lot or plan a major renovation.
TD's construction-to-permanent loan uses one application and one closing for new construction or renovations, then converts once the home is complete and a certificate of occupancy is provided. TD lists mortgage loan officers in Massachusetts in Boston, Braintree, Burlington, Melrose, Newton, and Walpole.
Get connected with this lender
Notable features:
- 1-4 unit primary residences and second or vacation homes
- An existing lot loan is paid off with the first disbursement
- Inspections at each draw, with a review of the builder's financial statements, license, and insurance
TD doesn't currently offer construction financing for condos or co-ops, or FHA or VA construction loans.
Other Massachusetts lenders to consider
Cape & Coast Bank, formerly The Cooperative Bank of Cape Cod, processes and underwrites construction loans locally, uses a local inspector before each disbursement, and offers a renovation construction loan it describes as a fit for historic home renovations. BankFive serves Massachusetts and Rhode Island with construction loans that can include land, and lists construction-to-permanent options.
Get connected with Cape & Coast BankGet connected with BankFive
How to choose a Massachusetts construction lender
- Start with septic and site approvals. On unsewered lots, Massachusetts' Title 5 rules for new construction start with your local Board of Health. Get that path clear before you lock in a lender timeline.
- Ask how draws really work. Cape Cod 5 and Cape & Coast both explain their inspection-based advances. Ask every lender how long an inspection takes and where funds land.
- Be specific about renovation scope. A gut rehab, an addition, or finishing a partly built house can change how a lender underwrites the loan.
- Plan for a larger loan. Massachusetts building costs can push projects past conforming limits, so read our guide to jumbo construction loans.
- Know what ends construction. Ask what's required to convert to a permanent mortgage after the build, including the certificate of occupancy.
- Building elsewhere in New England? See our guides to Vermont construction lenders and Maine construction lenders.
Frequently asked questions
Which lenders offer one-time close construction loans in Massachusetts?
Cape Cod 5, Citizens, Needham Bank, and TD Bank all describe single-closing construction loans that convert to permanent mortgages.
Can I finance a major renovation of an older home?
Yes. Cape Cod 5 covers rehabilitation of an existing home, Needham covers significant expansions and remodels, and Cape & Coast offers a renovation construction loan for projects like historic homes.
Can I get a loan on a partially built house?
Needham Bank says its program can be used to obtain a mortgage on a partially constructed home. Ask other lenders whether they will take over a project in progress.
Can I build a modular home?
Cape Cod 5 addresses modular homes in its construction loan FAQ. Ask how deposits to the modular manufacturer are handled.
Can I finance a condo or co-op renovation?
Usually not with these programs. TD doesn't offer construction financing for condos or co-ops, and Citizens lists cooperatives as ineligible.
Find your Massachusetts construction lender
Your best fit depends on your town, your site approvals, 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.