One of the best ways to afford a construction loan is through the government, specifically through the FHA— Federal Housing Administration. The FHA offers subsidized construction loans with lower interest rates and smaller down payments between 3.5-10%. Furthermore, the FHA has more lenient credit score requirements. You can get approved even with a credit score as low as 580.
In addition to the government, there are plenty of other lenders that issue construction loans. Banks, credit unions and home mortgage companies can provide a range of construction loans. Some of the most reputable lenders include Wells Fargo, Valley Bank, Garden State Home Loans and U.S Bank. Be sure to research the individual requirements of every lender.