New Construction Loans in Maryland

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?


We offer lending services in all 50 states!

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Frequently Asked Questions

What are the requirements for getting a construction loan?

To qualify for a construction loan, you’ll need building permits, architectural plans, a licensed contractor, and a detailed budget. Most lenders also require land ownership or a signed purchase agreement, a credit score of 660+, and at least 15% down. Loan funds are released in draws as work progresses—foundation, framing, roofing, etc. We also assess your liquidity, exit plan, and builder credentials. When these elements are solid and well-documented, we can move quickly. BNB Lending is known for getting builders funded fast and with flexible terms that match real-world timelines.

How do home construction loans differ from traditional financing options?

Home construction loans are designed for active builds, offering phased draw schedules and interest-only payments. Traditional loans disburse all funds upfront and require full monthly payments right away. Construction loans prioritize builder experience, project scope, and build timeline over personal income. They're ideal for STRs, new developments, or infill projects not eligible for permanent financing until complete. Once the build is done, borrowers often refinance into a long-term mortgage or DSCR loan. This two-step approach offers flexibility, lower early costs, and financing aligned with construction phases.

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

A credit score of 660 is typically required for construction loans, though our team looks at the full picture. If you have strong reserves, a qualified builder, and a clear scope of work, we may approve financing with a slightly lower score. We also evaluate your experience level, exit strategy, and projected comps. Unlike traditional mortgages, these loans focus on property execution—not just credit. Higher scores do help reduce interest rates and speed up funding. But with the right documentation and planning, we work with investors across the credit spectrum.

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

Construction loans are widely available to business entities like LLCs and corporations, not just individuals. In fact, most of our borrowers are real estate investors or builders operating through a company. A personal guarantor with 20–25% ownership is generally required. Business owners benefit from flexible underwriting that emphasizes builder quality, project viability, and cash flow over traditional W-2 income. If you're self-employed or scaling through a business, our loan structure gives you the control and speed you need. We make it simple to fund your next build with confidence.

What is the typical loan rate for construction financing?

Construction financing rates typically start at 5.50% and vary based on credit score, project complexity, builder experience, and market conditions. These are interest-only loans during construction, reducing monthly outflow while the home is being built. Once completed, borrowers usually refinance into fixed-rate mortgages or DSCR loans. Your draw schedule, liquidity, and location also affect the final rate. We tailor terms to your build—offering fast closings, no prepayment penalties, and a funding structure that aligns with construction progress. Stronger borrowers with organized packages tend to secure better pricing.

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

The best loans for new construction projects in Maryland are draw-based interest-only loans tailored to phased builds. Maryland investors use them for STRs in Ocean City, duplexes in Annapolis, and custom homes near Baltimore. We finance up to 85% of land and 100% of vertical construction costs. These loans are ideal for projects that require flexibility, speed, and minimal upfront costs. Once construction is complete, borrowers typically refinance into DSCR or long-term fixed-rate mortgage options. Our Maryland construction loan programs support experienced developers and first-time builders alike.

Explore new construction loans and other short-term rental loans in neighboring states like Delaware and West Virginia to scale your investments beyond Michigan.