New Construction Loans in Delaware

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.

GET A QUOTE

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?

Construction loans require architectural plans, a line-item budget, permits, and a signed contract with a licensed builder. Lenders usually ask for 15%–20% down and a credit score of at least 660. You’ll also need to own or have a contract on the land. Draw schedules are established to fund work in stages—foundation, framing, finishes, etc. We review your liquidity, contractor history, comps, and exit plan. Solid preparation leads to faster approvals and better loan terms. Our team moves quickly to help investors, builders, and developers secure the funds they need without red tape.

How do home construction loans differ from traditional financing options?

Home construction loans differ from traditional mortgage loans in how the money is disbursed and repaid. Construction financing releases funds in draws aligned with project phases, such as site prep, foundation, or framing. During the build, borrowers make interest-only payments, which keeps costs lower. Once construction wraps, borrowers often refinance into a long-term mortgage. Traditional loans, on the other hand, are structured for completed homes and require full repayment to begin immediately. Construction loans are better suited to active builds, especially when plans, permits, and a professional builder are already in place.

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

Most construction loan programs require a credit score of 660 or higher. However, the score is only one piece of the approval puzzle. We also evaluate liquidity, land ownership, builder experience, and projected value. If you have strong supporting documentation—permits, timelines, a vetted contractor—you may still qualify with a slightly lower score. Since these loans are interest-only during construction, lenders focus more on project execution than just personal financials. A solid plan can go a long way toward securing approval and better terms. The stronger your preparation, the more flexibility you’ll have.

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

Construction loans are fully available to small business owners, not just individuals. At BNB Lending, we commonly work with real estate LLCs, corporations, and even trusts. As long as a majority stakeholder provides a personal guarantee—typically 20–25% ownership—the business entity can apply. This is ideal for developers, builders, and real estate investors who operate through business structures. You don’t need W-2 income to qualify. Instead, we focus on your builder’s track record, the property’s potential, and the overall plan. These loans are structured to support business growth and real estate development.

What is the typical loan rate for construction financing?

Construction loan rates start around 5.50% and vary based on your credit score, project complexity, and experience level. These are short-term loans with interest-only payments, so your monthly costs are lower during the build. The final rate is also affected by loan size and location. After construction is complete, most borrowers refinance into long-term financing. We price each loan based on project risk and borrower profile. Our flexible structure means you can close quickly, keep overhead low, and focus on the build. Good preparation and a strong builder team often lead to better rates.

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

The best loans for new construction projects in Delaware are short-term, interest-only programs with draw-based disbursements. We lend up to 85% of land value and 100% of vertical construction costs. Delaware investors use these loans to build short-term rentals, duplexes, and custom homes in places like Rehoboth Beach, Dover, and Newark. Once construction is finished, borrowers typically refinance into a DSCR loan or fixed-rate mortgage. Our process supports fast approvals, builder flexibility, and timeline control. Whether you're building for resale or rental income, these loans offer the structure you need to stay on track.

Explore new construction loans and other Airbnb loans in neighboring markets like California and Washington to grow beyond Hawaii.