New Construction Loans in Louisiana

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?


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Frequently Asked Questions

What are the requirements for getting a construction loan?

To qualify for a construction loan in Louisiana, borrowers must submit architectural plans, permits, a contractor agreement, and a line-item budget. Most lenders require a credit score of at least 660, along with a down payment of 15%–20%. You’ll also need to own the land or have it under contract. In Louisiana, lenders want to see a clearly defined draw schedule to manage construction funds responsibly. Solid builder credentials and proper documentation speed up the process and improve terms.

How do home construction loans differ from traditional financing options?

Home construction loans in Louisiana are structured for phased development and differ from traditional loans in how they release funds and calculate payments. Instead of a lump sum at closing, construction loans disburse money as each stage of the build is completed. Borrowers make interest-only payments during the construction phase. Once the home is finished, they refinance into a long-term mortgage. Louisiana builders and developers often prefer this setup because it mirrors real-world cash flow needs and project timelines.

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

Lenders offering construction financing in Louisiana usually look for a credit score of 660 or higher. That said, strong builder experience, a realistic draw schedule, and good liquidity can help offset a lower score. Many Louisiana investors are able to qualify based on the strength of the project rather than perfect credit. At BNB Lending, we emphasize deal quality over rigid underwriting, especially for new construction loans that serve business or rental purposes.

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

New construction loans in Louisiana are commonly issued to small business owners, LLCs, and corporations. While individuals can also apply, many Louisiana investors choose to borrow through a business structure. A personal guarantor is typically required for majority owners. The approval process is focused more on builder credentials, documentation, and property feasibility than on personal income. This makes Louisiana’s construction financing ecosystem well-suited for STR hosts and residential developers alike.

What is the typical loan rate for construction financing?

Construction financing in Louisiana typically starts around 5.50%, depending on builder experience, credit profile, and project scope. These loans are interest-only for the duration of the build and offer flexible draw schedules that match local construction timelines. In Louisiana markets, particularly where demand for short-term rentals or infill builds is high, strong applications often lead to faster closings and more favorable terms. Once complete, borrowers usually refinance into a fixed mortgage or DSCR loan.

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

The best loans for new construction projects in Louisiana are interest-only draw-based construction loans. Whether you’re building a short-term rental in New Orleans, a duplex in Baton Rouge, or a fourplex near Lafayette, this structure allows you to fund each phase efficiently. Louisiana investors benefit from staged capital that supports project milestones. After construction, you can refinance into a long-term loan. Our Louisiana programs are designed to close quickly, match local build cycles, and support business-friendly execution strategies.

Expanding your new construction projects beyond Louisiana? Consider draw-based lending in Texas , Arkansas , and Mississippi to finance builds across the Gulf South.