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4 Strong Construction Loan Options in Washington, DC for Rowhouse Rebuilds and New Homes
Construction lending in the District looks different from almost anywhere else. Projects here are often gut renovations of rowhouses, rebuilds behind historic facades, or infill homes on narrow lots. And if you own a condo or co-op unit, most construction programs won't touch it. Four strong construction loan options to compare are Atlantic Union Bank, Citizens, TD Bank, and Truist, each with a one-time close construction-to-permanent loan and a presence in DC.
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
Each lender had to show, on its own site:
- DC availability, either on a state list or through DC branches or loan officers
- A one-time close construction-to-permanent loan
- Renovation or rebuild eligibility, since most DC projects involve an existing structure
- Stated rules on property types, including condos and co-ops where available
Facts come from official lender pages or reputable third-party coverage.
Comparison at a glance
| Lender | DC presence | One-time close | Renovation / teardown | Condos & co-ops |
|---|---|---|---|---|
| Atlantic Union Bank | DC branches with mortgage services | Yes; two-time close also offered | Separate Stay at Home Renovation Loan | Not specified on program page |
| Citizens | Construction-to-permanent program offered in DC | Yes | Yes, including teardowns | Co-ops ineligible |
| TD Bank | Loan officers in Washington | Yes | Yes | No condo or co-op construction financing |
| Truist | Branches across the District | Yes | Rehabs, renovations and tear-downs eligible | Not specified on program page |
Atlantic Union Bank
Who it fits: Borrowers who want the option of a two-time close with FHA, VA, or USDA permanent financing, or who are planning a major renovation of the home they live in.
Atlantic Union's home construction loans come in one-time and two-time close versions. The one-time close lets you lock your rate before construction with no requalification after the initial closing; the two-time close refinances into an FHA, VA, USDA, or conventional loan after requalifying. The bank lists DC branches on New York Avenue NW and Connecticut Avenue NW.
Get connected with this lender
Notable features:
- An easy builder review process
- Property and flood insurance required before construction starts, when applicable
- A separate Stay at Home Renovation Loan for major renovations to your existing home
Atlantic Union notes that not all loans or products are available in all states.
Citizens
Who it fits: Owners of a single-family rowhouse planning a gut renovation or a tear-down and rebuild.
Citizens' Construction-to-Permanent Financing program combines your construction or renovation loan and permanent mortgage into a single closing. How interest is handled during the build varies by lender. Its mortgage disclosures list the District of Columbia among its construction-to-permanent locations.
Get connected with this lender
Notable features:
- New construction, renovation, and teardowns
- Your builder requests funds for completed work, and Citizens orders an inspection before each draw
- CNBC Select named Citizens among its best construction loan lenders
Citizens lists cooperatives and investment properties as ineligible, which rules out co-op renovations.
TD Bank
Who it fits: Owners of a 1-4 unit rowhouse or detached home who want a renovation or rebuild with one closing.
TD's construction-to-permanent loan covers new construction and renovations, including renovations folded into a refinance of your current mortgage, with one application and one closing. It converts once the home is complete and a certificate of occupancy is provided. TD lists mortgage loan officers in Washington, DC.
Get connected with this lender
Notable features:
- Available for 1-4 unit primary residences and second homes, which can fit a rowhouse with a rental unit
- Funds already spent on architectural drawings and permits can generally count toward your down payment
- Inspections at each draw, with a review of the builder's financials, license, and insurance
- Furniture and décor can't be financed; draws cover the building and permanent fixtures
TD doesn't currently offer construction financing for condos or co-op apartments, or FHA or VA construction loans.
Truist
Who it fits: Borrowers taking on a teardown or heavy rehab who want a dedicated construction specialist.
Truist's construction-to-permanent loan uses one loan and one closing, with protection if rates rise during the build and a one-time float-down option on fixed-rate loans at modification. Truist has branches in the District, and CNBC Select notes it lends in 47 states plus Washington, D.C.
Get connected with this lender
Notable features:
- Rehabs, renovations, and tear-downs are eligible, and you choose who does the work
- A dedicated construction loan specialist throughout the project
Truist doesn't currently offer FHA construction-to-permanent loans.
Other DC-area lenders to consider
McLean-based Chain Bridge Bank serves the greater Washington region and says it may offer residential construction and renovation loans, reviewing plans, specifications, budgets, contractor information, and insurance. It also holds some mortgages in its own portfolio.
Get connected with Chain Bridge Bank
How to choose a DC construction lender
- Confirm your property type first. If you own a co-op or condo unit, most construction-to-permanent programs, including TD's and Citizens', won't apply. Ask about other renovation financing instead.
- Factor in historic review. If your home is a landmark or sits in a historic district, DC's Historic Preservation Office handles permit and design review for historic properties, which can affect your timeline and draw schedule.
- Price the whole job. DC renovation and infill costs can push loans past conforming limits. Read our guide to jumbo construction loans.
- Vet the contractor's paperwork. TD reviews the builder's financials, license, and insurance. Have those ready before you apply anywhere.
- Know the finish line. Ask what's needed 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 Washington, DC?
Atlantic Union Bank, Citizens, TD Bank, and Truist all describe one-time close construction-to-permanent loans and have a DC presence.
Can I get a construction loan to renovate a co-op or condo in DC?
Usually not through these programs. TD doesn't offer construction financing for condos or co-op apartments, and Citizens lists cooperatives as ineligible.
Can I gut-renovate a rowhouse with a construction loan?
Yes, with several lenders. Citizens and TD cover renovations, and Truist lists rehabs and renovations as eligible.
Can I finance a two-unit rowhouse?
Possibly. TD's construction-to-permanent loan covers 1-4 unit primary residences. Confirm with each lender how rental units are treated.
Do historic district rules affect my construction loan?
They can affect timing. Permit and design review through DC's Historic Preservation Office may add steps before work begins, so build that into your schedule.
Find your DC construction lender
The right lender depends on your property type, your block, and your contractor. 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.