New Construction Loans in Idaho
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.
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!
Frequently Asked Questions
What are the requirements for getting a construction loan?
Construction loan approval usually depends on your ability to provide approved plans, an itemized construction budget, permits, and a licensed contractor agreement. A down payment of 15%–20% is common, and most lenders require a minimum credit score of 660. You'll also need to own or have a contract on the land. Funds are disbursed in stages based on the project's timeline. At BNB Lending, we also look at your liquidity, contractor experience, and exit plan. If you’re well-prepared, we can quote and close faster—so you can break ground without unnecessary delays.
How do home construction loans differ from traditional financing options?
Home construction loans differ from traditional mortgages by offering phased funding aligned with the build process. Borrowers make interest-only payments while construction is underway, easing pressure on early cash flow. Traditional mortgages offer a lump sum and begin principal-and-interest repayment right away—making them unsuitable for builds. Construction loans focus on plans, permits, builder credentials, and end value rather than just borrower income. They’re ideal for STRs, custom homes, and infill projects. Once your build is complete, you can refinance into a DSCR or fixed mortgage. This two-step process keeps you financially nimble.
What credit score is needed to qualify for new construction financing?
Most lenders look for a credit score of at least 660 to approve construction financing. However, if you have a strong project and solid reserves, lower scores may still qualify. We look at more than just credit—things like builder reputation, liquidity, and project comps are all factored in. Higher scores typically earn better rates and smoother closings, but our asset-based lending model is flexible. If you’re building a short-term rental or multi-unit investment property, your planning matters more than your personal W-2s. A clear draw schedule and exit strategy will strengthen your application.
Are construction loans available to small business owners or just individuals?
Construction loans are available to small business owners as well as individuals. Many real estate investors borrow through LLCs or corporations, and we support that structure. As long as one owner provides a personal guarantee—usually someone with 20% to 25% ownership—we can approve business-entity applications. This setup is ideal for investors who don’t have W-2 income but have strong liquidity and a clear exit strategy. We lend to businesses building STRs, single-family homes, and even multi-unit developments. Whether you're a solo operator or managing a team, our loan programs can be tailored to fit.
What is the typical loan rate for construction financing?
Construction financing rates typically begin around 5.50%, with adjustments based on project risk, borrower credit, and contractor experience. These loans are interest-only during the build, reducing monthly overhead while you complete the home. Once construction wraps, borrowers often refinance into a long-term mortgage or DSCR loan. Strong credit and a proven builder may qualify for better pricing. We customize every quote to your project’s size, timeline, and location. Whether you’re a first-time builder or an experienced developer, our lending team helps you structure a rate that fits both your goals and your market.
What types of loans are best for new construction projects in Idaho?
The best loans for new construction projects in Idaho are draw-based interest-only loans that align with phased building timelines. These construction loans typically fund up to 85% of the land and 100% of vertical costs. Idaho builders use them for STRs in Sun Valley, custom homes in Boise, and multi-unit builds in Coeur d’Alene. Once the build is complete, many borrowers refinance into a DSCR loan or fixed-rate mortgage. Our process is designed for fast closings and flexibility—especially in seasonal or fast-growing markets. With no prepayment penalties, these loans support your full investment strategy.
