New Construction Loans in Arkansas

From the foundation up, we’re by your side!

Ready to kick off your new construction project? BNB Lending offers fast, flexible financing with 1 to 2-year interest-only terms to help you get the job done efficiently. We provide funding for residential properties (1 to 4 units), multi-family units, condos, apartment complexes, commercial buildings, and hotel construction projects. Our financing covers up to 85% of the purchase price and 100% of vertical construction costs, ensuring your project is ready for rent or sale. Plus, with no prepayment penalties, you can refinance or sell whenever you're ready. Our quick closing process means you can get quoted and funded in as little as 14 days.

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How to qualify

To obtain a quote, we will need the following information:

Property Value and

 Purchase Price


Down Payment

Amount


Credit Score

 Asset Types

  • Single Family Homes
  • Townhomes
  • Condos
  • 2 - 4 Units (Duplex, Triplex, Quadplex)
  • Multi-Family: 5 - 8 Units
  • Mixed-Use: 2 - 8 Units
  • Multi-Family: 9+ Unit


Loan Terms

  • Loan Sizes: $100k up to $3.5 Million (Larger loan sizes available on a case by case basis)
  • Purchase LTV: Up to 85%
  • Rate & Term Refinance LTV: Up to 80% 
  • Cash Out Refinance LTV: Up to 80%
  • Amortization: 30 Year % 40 Year Amortization Options Available
  • Term Lengths: 5/6 ARMs, 7/6 ARMs, 10 Year Interest Only, 30 Year Fixed & 40 Year Fixed
  • Floor Rate: 5.50% (subject to change daily due to market volatility)
  • Full Recourse with personal guarantee required for all borrowers with majority ownership (typically 20%+ or 25%+ if closing in an Entity)
  • DSCR Requirement: 1.00x or greater depending on loan size and property type. Sub-1.00x DSCR and NO DSCR options available.
  • Vesting: Lending to Individuals, LLCs, and Corporations. Trusts Allowable on a Case by Case Basis.
  • Average Time to Close: 14 to 35 days

Wondering if you qualify for investment property financing in your area?


We offer lending services in all 50 states!

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Frequently Asked Questions

What are the requirements for getting a construction loan?

Most construction loans require a complete project plan, including architectural drawings, permits, and a licensed general contractor. You’ll also need a detailed budget and timeline. A down payment of 15%–20% is common, and most lenders expect a credit score of at least 660. Documentation showing land ownership or a purchase agreement is usually required. These loans are disbursed in stages based on project milestones. We also consider borrower liquidity and contractor experience. With a solid plan and financial prep, you can access funding quickly to start your build. Strong deals tend to close faster with better terms.

How do home construction loans differ from traditional financing options?

Home construction loans provide phased funding and interest-only payments, while traditional mortgages offer a lump sum and begin full repayment immediately. Construction financing is released in stages as each milestone—like pouring the foundation or completing framing—is reached. This structure aligns with the pace of a build and reduces financial strain during development. Traditional loans focus on borrower income and credit; construction loans look more closely at the project and team. This makes them ideal for custom homes, short-term rentals, or infill projects. Upon completion, many borrowers refinance into long-term mortgage products.

What credit score is needed to qualify for new construction financing?

New construction financing typically requires a minimum credit score of 660. However, your score is just one part of the approval process. We also consider your available funds, builder experience, and the project’s estimated value. If other aspects of your application are strong—like comps, permits, or a full draw schedule—you may qualify with slightly lower credit. These loans are built for real estate developers and investors, so we emphasize the business case. Higher credit can unlock better terms, but a solid plan and liquidity can help close the gap if your score isn’t perfect.

Are construction loans available to small business owners or just individuals?

Construction loans are available to individuals and small business owners alike. Many of our clients borrow under LLCs or corporations, particularly when building short-term rentals or multi-unit homes. As long as one owner provides a personal guarantee—usually with 20–25% ownership—we can approve loans for business entities. This approach helps investors qualify without relying on W-2 income. We also work with trusts on a case-by-case basis. Documentation may vary slightly, but strong project planning and builder experience matter most. We make it easy for both individuals and businesses to access construction capital.

What is the typical loan rate for construction financing?

Construction loan rates usually start around 5.50%, depending on the project, borrower profile, and credit score. These are short-term loans with interest-only payments during the build phase, which helps manage cash flow before the home is complete. Risk, location, and borrower experience can all influence pricing. Once construction wraps, borrowers often refinance into a long-term mortgage—typically with better terms. Our loan structure keeps things flexible, with no prepayment penalties and customizable draw schedules. Rates are always adjusted to reflect market conditions and loan risk, ensuring competitive pricing for investors and builders alike.

What types of loans are best for new construction projects in Arkansas?

The best loans for new construction projects in Arkansas are short-term interest-only programs with draw schedules tied to construction progress. These construction loans work especially well for real estate investors building STRs in Hot Springs, duplexes in Little Rock, or small multifamily projects statewide. We fund up to 85% of the land purchase and 100% of vertical construction costs. Once your project is complete, you can refinance into a DSCR loan or long-term mortgage. This structure gives Arkansas borrowers control over capital and timelines while ensuring financing adapts to project needs at every stage.

Explore new construction loans and other STR loans in neighboring states like Utah and New Mexico to scale your portfolio beyond Colorado.