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Top 4 Construction Loan Lenders in New York for Custom Builds and Renovations
If you're building a custom home or taking on a major renovation in New York, four strong construction loan options are Citizens, ESL Federal Credit Union, Flagstar Bank, and TD Bank. Each offers a single-close construction-to-permanent loan for New York properties, with differences in where they lend, how they handle larger loans, and whether they finance renovations.
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 looked for lenders whose own websites show:
- New York availability for residential construction financing
- A one-time close option, where construction and the permanent mortgage close together
- Support for custom homes or larger loan amounts, including jumbo where stated
- A clear builder approval and draw process
Every feature below comes from each lender's official pages or reputable third-party coverage.
Comparison at a glance
| Lender | Where in NY | One-time close | Larger / jumbo loans | Renovation | Builder & draws |
|---|---|---|---|---|---|
| Citizens | Program offered in NY; some location limits may apply | Yes | Not specified on program page | Yes, including teardowns | Inspection before each draw |
| ESL Federal Credit Union | 11 Rochester-area / Finger Lakes counties | Yes | Not specified on program page | New builds only | Four milestone draws; participating builders |
| Flagstar Bank | NY metro foothold; national mortgage lending | Yes, conforming and jumbo | Jumbo one-close ARM; large primary-residence builds | Yes | Full third-party builder contract |
| TD Bank | Loan officers across NYC, Long Island, and Westchester | Yes | Not specified on program page | Yes | Inspection at each draw; builder review |
Citizens
Who it fits: Borrowers who want one loan for a new build, a major renovation, or a teardown and rebuild.
Citizens' Construction-to-Permanent Financing program combines the construction or renovation loan and the permanent mortgage into a single closing, with flexible lot options. How interest is handled during the build varies by lender. Its mortgage disclosures list New York among the states where the program is offered.
Get connected with this lender
Notable features:
- Covers new construction, renovation, and teardowns
- Your builder requests funds as work is completed, and Citizens orders an inspection before releasing each draw
- CNBC Select highlighted Citizens for allowing a longer construction period than most lenders
Citizens' disclosures list cooperatives as ineligible properties, which matters for co-op renovations in New York City.
ESL Federal Credit Union
Who it fits: Western New York and Finger Lakes members building a new primary or second home with a firm budget.
ESL's Single Close Construction to Permanent loan is available for properties in Cayuga, Genesee, Livingston, Monroe, Ontario, Orleans, Seneca, Steuben, Wayne, Wyoming, and Yates counties. It uses a fixed rate during both construction and permanent phases and converts automatically to a fixed-rate mortgage when construction is complete.
Get connected with this lender
Notable features:
- Four milestone-based draws: foundation, rough framing/weather-tight, electrical and plumbing, and finish work with a final walkthrough
- Builders can apply to become ESL participating builders
- Extended rate locks are available while the home is built, plus additional closing options if delays require changes to the loan
ESL describes the loan as ideal for borrowers who know their construction costs at application and don't expect upgrades or delays. It's for newly built homes, not renovations.
Flagstar Bank
Who it fits: Downstate borrowers building a higher-priced custom home who want a one-close jumbo option.
Flagstar, founded in Queens and now with a strong foothold in the New York/New Jersey metro area according to its company profile, offers several paths on its construction loans page: a one-close conforming loan, a one-close jumbo ARM, and a separate construction draw loan that closes on the permanent mortgage after the build.
Get connected with this lender
Notable features:
- Conventional, jumbo, VA, USDA, and FHA options, with fixed and adjustable rates
- On its conforming one-close loan, soft costs like architectural, engineering, and permit fees may be financed
- Renovation financing is also offered
Flagstar requires a full third-party builder contract on its one-close loans, so owner-builder projects aren't a fit. Confirm product availability for your county.
TD Bank
Who it fits: Borrowers in the New York metro area who own land or have a lot loan to pay off, and homeowners planning a major renovation.
TD's construction-to-permanent loan covers new construction and renovations, with one application and one closing, fixed or adjustable options, and automatic conversion to the permanent mortgage once the home is complete and a certificate of occupancy is issued. TD lists mortgage loan officers in New York, with offices including Brooklyn, Queens, Staten Island, Melville, and White Plains.
Get connected with this lender
Notable features:
- Available for 1-4 unit primary residences and second or vacation homes
- If you have a loan on your lot, the first draw pays it off before construction starts
- Money already put into the project, such as land, architectural drawings, and permits, can generally count toward your down payment
- An inspection is completed at each draw request, and TD reviews the builder's financials, license, and insurance
TD doesn't currently offer construction financing for condos or co-ops, or FHA or VA construction loans. Self-builders must show they're experienced, licensed, and insured builders.
Other New York lenders to consider
A few more lenders offer residential construction financing in parts of New York. M&T Bank lists two-close construction loans with fixed, adjustable, and jumbo end loans. TEG Federal Credit Union offers a single-close construction-to-permanent loan in Dutchess, Orange, Ulster, Putnam, Rockland, Sullivan, and Westchester counties.
Get connected with M&T BankGet connected with TEG Federal Credit Union
How to choose a New York construction lender
- Start with geography. Some lenders, like ESL and TEG, lend only in certain counties, so confirm your property's location qualifies.
- Decide on one-time vs. two-time close. A one-time close means one closing and no requalifying at the end. A two-time close can give you flexibility on the permanent loan but adds a second closing.
- Check your loan size. If your loan may be above the conforming limit, read our guide to jumbo construction loans and ask each lender about its jumbo options.
- Match the lender to your builder. Ask how the lender approves builders and how draws are inspected and paid.
- Plan the finish line. Learn what's required to convert to a permanent mortgage after the build, including the certificate of occupancy.
Frequently asked questions
Which lenders offer one-time close construction loans in New York?
Citizens, ESL Federal Credit Union, Flagstar Bank, and TD Bank all describe single-close construction-to-permanent loans on their official sites, and TEG Federal Credit Union offers one in seven Hudson Valley counties.
Can I use land I already own?
Often, yes. TD, for example, says funds already used for the land can generally count toward your down payment, and an existing lot loan is paid off with the first draw. Ask each lender how it values your lot.
Can I get a construction loan for a renovation in New York?
Yes, some lenders offer them. Citizens, Flagstar, and TD Bank describe renovation financing, while ESL's single-close loan is for newly built homes.
Can I finance construction on a co-op or condo?
Often not. TD doesn't offer construction financing for condos or co-ops, and Citizens lists cooperatives as ineligible.
Can I act as my own general contractor?
It's limited. TD requires self-builders to show they're experienced, licensed, and insured builders, and Flagstar requires a full third-party builder contract on its one-close loans. Ask before you apply.
Find your New York construction lender
The right construction loan depends on your county, loan size, project type, and 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.