New Construction Loans in Maine

Frequently Asked Questions

What are the requirements for getting a construction loan?

To qualify for a construction loan, you’ll need to submit a full budget, construction timeline, architectural plans, and proof of permits. A licensed builder is required, and you must own or be under contract for the land. Most lenders require a 660+ credit score and 15%–20% down. We release funds in draws aligned with your project’s build phases. Strong liquidity, exit strategy, and comps will support faster approval. If your documentation is well-organized, our team can structure a loan that matches your timeline, minimizes stress, and supports your build from start to finish.

How do home construction loans differ from traditional financing options?

Home construction loans differ from traditional financing by offering phased disbursements that align with build milestones. Instead of a lump sum at closing, funds are released as work is completed. These loans are interest-only during construction, which helps manage early-stage cash flow. Traditional mortgages require full amortization from day one and are only available for completed properties. Construction loans are underwritten based on the project’s viability, contractor strength, and timeline. Once construction is complete, borrowers can refinance into a long-term mortgage. This dual-loan strategy provides flexibility and financing tailored to each build stage.

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

A credit score of 660 is generally required for new construction loans, though exceptions are possible if other parts of your application are strong. We evaluate liquidity, experience, builder reputation, and project detail. If you’ve got a solid plan, even a lower score may qualify. Higher credit scores do tend to yield better rates and smoother closings. That said, our focus is on execution risk, not just raw credit numbers. We work with seasoned builders, first-time developers, and real estate investors who may not fit the traditional lending mold. Your planning matters more than your paycheck.

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

Absolutely—construction loans are available to both individuals and business owners. Many of our borrowers are LLCs or corporations building STRs or long-term rentals. We typically require a personal guarantee from someone with 20–25% ownership. Business owners benefit from flexible underwriting that prioritizes the project and builder credentials over personal W-2 income. If you’re self-employed or operating a real estate business, our construction financing options can help you scale. You’ll need a licensed builder, permits, and a solid exit strategy. We’ll structure your loan to support phased development and smooth funding.

What is the typical loan rate for construction financing?

Construction loan rates typically begin around 5.50% and are interest-only during the build period. Your final rate depends on credit score, project risk, contractor history, and market conditions. After the property is complete, most borrowers refinance into a DSCR or conventional mortgage. We tailor loan terms to your project’s size, location, and draw schedule. The better your documentation—budget, plans, exit strategy—the more likely you are to receive favorable terms. Our phased structure gives you control over cash flow while aligning payments with real construction progress. Fast closings and no prepay penalties are included.

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

The best loans for new construction projects in Maine are draw-based, short-term loans that support phased construction. Maine investors often use these loans for STRs near Bar Harbor, lakefront homes, or infill builds in Portland. We finance up to 85% of the land and 100% of vertical construction costs. Once the project is complete, borrowers can refinance into DSCR loans or fixed-rate mortgages. These construction loans are ideal for investors seeking control, speed, and flexible funding. Whether you're building for rental income or resale, our Maine lending programs are designed to keep your build on track.

Explore new construction loans and other STR loans in neighboring states like Vermont and Massachusetts to extend your footprint beyond Maine.