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4 Strong Construction Loan Options in Pennsylvania for Custom Homes and Major Rehabs
Pennsylvania has a deep bench of community banks and credit unions, so a homeowner building on farmland in Lancaster County or rehabbing a stone house in Chester County has real choices. Four strong construction loan options are Citizens, Fulton Bank, PSECU, and TD Bank. Each offers a one-time close construction-to-permanent loan for Pennsylvania properties, with different product menus and draw rules.
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 only included lenders whose official sites show:
- Pennsylvania availability for residential construction loans
- A one-time close construction-to-permanent option
- Product detail, such as fixed, adjustable, jumbo, or rehab versions
- A defined builder review and draw process
Each fact below comes from lender pages or reputable third-party sources.
Comparison at a glance
| Lender | PA presence | One-time close | Product range | Builder & draws |
|---|---|---|---|---|
| Citizens | Construction-to-permanent program offered in PA | Yes | New build, renovation, teardown | Inspection before each draw |
| Fulton Bank | Headquartered in Lancaster | Yes | Fixed with float-down, ARM, jumbo ARM, rehab ARM | Builder draw requests at stages of work |
| PSECU | Pennsylvania credit union | Yes | Fixed and adjustable | Builder and draw schedule reviewed by PSECU |
| TD Bank | Loan officers in Philadelphia and its suburbs | Yes | Fixed or adjustable; renovations | Inspection at each draw; builder review |
Citizens
Who it fits: Borrowers who want one program for a new build, a renovation, or a tear-down and rebuild.
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 Pennsylvania as a construction-to-permanent state.
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Notable features:
- Builders request funds for completed work, and Citizens orders an inspection before releasing each draw
- The application looks like a regular mortgage, plus your builder contract and plans and specifications
- CNBC Select named Citizens one of its best construction loan lenders
Citizens lists cooperatives, investment properties, and manufactured housing as ineligible.
Fulton Bank
Who it fits: Borrowers who want the widest menu of one-time close products, including a rehab option.
Fulton Bank, headquartered in Lancaster, lends through Fulton Mortgage Company. Its construction loan FAQ lists several one-time close products: a fixed-rate construction loan with a float-down, adjustable-rate construction loans with possible conversion to fixed at modification, a jumbo ARM, and a construction rehab ARM.
Get connected with this lender
Notable features:
- Can finance buying a lot and building on it, or building on a lot you already own and paying off any liens
- Your builder submits draw requests at certain stages; how interest is handled during the build varies by lender
- The loan converts to a conventional mortgage once the home is complete and the certificate of occupancy is issued
Fulton notes that switching from an ARM to a fixed rate at modification requires requalifying, in line with Fannie Mae guidelines.
PSECU
Who it fits: Credit union members building a single-family detached home who want low lender costs on the construction side.
PSECU's construction loan is a one-time close loan that funds the land purchase and construction, then converts to a traditional mortgage. PSECU says equity in land you own can count toward your down payment.
Get connected with this lender
Notable features:
- How interest is handled during the build varies by lender.
- Fixed and adjustable permanent options
- No cost for appraisal, processing and underwriting, builder draw inspections, credit report, or flood certification
- PSECU reviews and accepts your builder and draw schedule, and sends plans and specs to the appraiser
PSECU's program is for primary or second homes, limited to single-family detached houses, and construction can't begin until after settlement.
TD Bank
Who it fits: Southeastern Pennsylvania borrowers who own land, have a lot loan to pay off, or are planning a large renovation.
TD's construction-to-permanent loan covers new construction and renovations with one application and one closing, converting once the home is complete and a certificate of occupancy is provided. TD lists mortgage loan officers in Pennsylvania in Exton, Haverford, Horsham, Huntingdon Valley, Newtown, Philadelphia, and West Chester.
Get connected with this lender
Notable features:
- 1-4 unit primary residences and second or vacation homes
- The first disbursement pays off any existing loan on your lot
- Land, architectural drawings, and permits you've paid for can generally count toward your down payment
- Inspection at each draw request; TD reviews the builder's financials, license, and insurance
TD doesn't currently offer FHA or VA construction loans, or construction financing for condos or co-ops.
Other Pennsylvania lenders to consider
Mid Penn Bank offers construction mortgages for building a single-family home, significantly rehabbing an existing home, or completing an addition. Truist offers one-loan, one-closing construction financing and has branches in Pennsylvania.
Get connected with Mid Penn BankGet connected with Truist
How to choose a Pennsylvania construction lender
- Pick your product before your lender. If you want an ARM, a fixed rate, a jumbo, or a rehab loan, Fulton's menu shows how different those paths can be.
- Ask about transfer tax. Pennsylvania's realty transfer tax applies to the value of real estate, including contracted-for improvements. Ask your settlement agent how your lot purchase and builder contract are structured.
- Confirm the property type. PSECU's program is limited to single-family detached homes. Twins, townhomes, and condos may need a different lender.
- Vet your builder early. Every lender here reviews the builder. Have the contract, plans, budget, license, and insurance ready.
- Size the loan and plan the finish. Read our guide to jumbo construction loans if needed, and learn what you need to convert to a permanent mortgage after the build.
Frequently asked questions
Which lenders offer one-time close construction loans in Pennsylvania?
Citizens, Fulton Bank, PSECU, and TD Bank all describe one-time close construction-to-permanent loans on their official sites.
Is there a construction loan for rehabbing an older Pennsylvania home?
Yes. Fulton lists a construction rehab ARM, Citizens covers renovations and teardowns, and Mid Penn offers construction mortgages for significant rehabs and additions.
Can I use land I already own?
Yes, with several lenders. PSECU says equity in owned land can count toward the down payment, and Fulton can finance construction on a lot you already own while paying off any liens.
Can I get a jumbo construction loan in Pennsylvania?
Fulton lists a jumbo ARM among its one-time close products. Ask other lenders about larger loan options for your county.
When can construction start?
Usually after closing. PSECU says construction can't begin until after settlement, so plan your builder's start date around closing.
Find your Pennsylvania construction lender
Your best match depends on your county, product preferences, 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.