New Construction Loans in Connecticut

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?

To secure a construction loan, you’ll need a full budget, architectural plans, approved permits, and a contract with a licensed builder. Most lenders require at least 15%–20% down and a credit score of 660 or above. Land should be owned or under contract, and the project must show clear value and a logical timeline. Funds are released through a draw schedule tied to construction progress. We also evaluate your liquidity, contractor background, and comps. Preparing these pieces in advance helps you close faster and access better rates. Our process is built for speed and flexibility.

How do home construction loans differ from traditional financing options?

Home construction loans are short-term, interest-only loans designed for active builds. Unlike traditional mortgages, which disburse a full amount upfront and begin amortization immediately, construction loans are released in stages. Borrowers receive funds at key milestones—foundation, framing, completion—based on a draw schedule. This reduces financial pressure early in the build. Construction loans also focus on the viability of the project rather than just personal income or debt ratios. You’ll still need strong documentation, but approval is more about scope, permits, and contractor history. Traditional loans are better for completed properties—not active construction.

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

Construction financing usually requires a credit score of 660 or better, though we look at more than just your FICO. If you have strong reserves, a licensed builder, and detailed plans, we may approve your loan with a slightly lower score. Higher credit generally results in better rates and faster processing. These loans are designed for real estate investors and builders, so documentation focuses on the deal itself—draw schedules, timelines, comps—not just tax returns or W-2s. A complete package with project milestones, scope of work, and contractor credentials can help offset lower credit in many cases.

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

Small business owners absolutely qualify for construction loans. In fact, many of our clients apply through LLCs or corporations. As long as someone with 20%–25% ownership offers a personal guarantee, we can lend to your business entity. This setup works well for STR developers, real estate investors, and commercial builders. Even without W-2 income, business borrowers can qualify by submitting a full scope of work, budget, and liquidity documentation. We also consider builder experience and exit strategy. Our lending model supports businesses looking to grow without the red tape of traditional mortgage underwriting.

What is the typical loan rate for construction financing?

Typical construction loan rates begin around 5.50%, depending on project complexity, borrower experience, and credit score. These loans are interest-only during construction, which helps reduce upfront payments. Rates can vary based on loan size, build timeline, and location. Once construction ends, many borrowers refinance into a DSCR mortgage or a 30-year fixed-rate loan. This two-step strategy lets you stay lean during the build while securing long-term financing later. Our draw-based loan programs are priced to match risk and project size. We aim to keep your build affordable while offering unmatched flexibility and closing speed.

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

The best loans for new construction projects in Connecticut are interest-only draw programs tailored to phased building. We offer financing for single-family homes, STRs, and multi-unit properties in cities like Stamford, New Haven, and Hartford. These construction loans can fund up to 85% of the land purchase and 100% of vertical construction costs. Connecticut builders often pair them with long-term refinance options once the property is complete. With no prepayment penalties and quick closings, these loans let you build on your timeline—while keeping cash flow steady during the construction phase.

Explore new construction loans and other short-term rental loans in neighboring states like Florida and South Carolina to expand your reach beyond Georgia.