New Construction Loans in Indiana
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?
To get approved for a construction loan, you’ll need a licensed general contractor, building permits, and an itemized project budget. Most lenders ask for 15% to 20% down and a credit score of 660 or higher. You should either own the land or have it under contract. Draws are scheduled to release funds as milestones are completed. At BNB Lending, we also consider the builder’s track record, market comps, and borrower liquidity. A strong, organized proposal helps expedite approval. We work with builders and investors to structure loans that fit your timeline and financial goals.
How do home construction loans differ from traditional financing options?
Home construction loans are short-term, phased loans that align with your build timeline. Funds are disbursed in draws based on progress—foundation, framing, inspections—while you make interest-only payments. Traditional mortgage loans provide a lump sum at closing and begin full amortization immediately, making them unfit for ground-up builds. Construction financing is based more on the project than personal income and offers far more flexibility during development. Once construction is complete, you can refinance into a long-term mortgage or DSCR loan. This structure keeps early costs low and aligns capital with construction stages.
What credit score is needed to qualify for new construction financing?
Most new construction loans require a credit score of at least 660, though approval also depends on project strength and borrower liquidity. If your score is lower, we may still approve your application with strong reserves, a licensed builder, and solid plans. Higher scores often receive better interest rates and faster funding. Our underwriting model focuses on construction risk, timeline, and builder experience—not just personal income. This flexibility helps experienced developers and first-time builders alike. Presenting a professional, well-documented loan package can make a big difference, even if your credit isn’t perfect.
Are construction loans available to small business owners or just individuals?
Construction loans are available to both individuals and small business entities. We often work with LLCs, corporations, and real estate investors who operate under business names. A personal guarantor with 20–25% ownership is usually required. We focus on builder credentials, project comps, liquidity, and exit strategy—not tax returns or W-2s. This makes construction financing especially accessible to business owners with alternative income streams. Whether you're developing an STR, duplex, or multi-unit property, our loans are structured to help you scale your real estate portfolio efficiently and responsibly.
What is the typical loan rate for construction financing?
Typical construction loan rates start around 5.50%, but final pricing depends on credit score, experience, and deal complexity. These loans are interest-only during construction, keeping initial costs low until the property is completed. Afterward, most borrowers refinance into a long-term mortgage or DSCR loan. Stronger borrowers with proven experience and good credit often receive better rates. We assess project scope, builder reliability, and local comps when determining terms. Our lending model is built for speed, flexibility, and investor performance—so rates are tailored to your real-world risk profile, not just a credit algorithm.
What types of loans are best for new construction projects in Indiana?
The best loans for new construction projects in Indiana are interest-only draw loans that disburse funds based on build milestones. These construction loans are perfect for STRs in Bloomington, duplexes in Fort Wayne, or multifamily projects near Indianapolis. We lend up to 85% of the land cost and 100% of vertical construction. Once the build is complete, borrowers can refinance into long-term mortgage products like DSCR loans. Our Indiana programs are ideal for investors who need speed, flexibility, and funding that aligns with construction phases—not rigid mortgage terms meant for finished homes.
