New Construction Loans in Mississippi
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 secure a construction loan, you’ll need a full project budget, permits, architectural plans, and a licensed builder. You should also either own the land or have it under contract. Most lenders ask for a 660+ credit score and 15%–20% down. Funds are released in draws based on progress—such as completing the foundation, framing, or final inspection. We also assess builder credentials, comps, and your liquidity. Organized documentation and a defined exit plan speed up the approval process, helping you start construction without unnecessary red tape or delay.
How do home construction loans differ from traditional financing options?
Home construction loans differ from traditional mortgages by offering staged funding tied to construction milestones. Payments are interest-only during the build phase, allowing you to conserve capital. In contrast, traditional loans are disbursed in full at closing and require full amortization from day one. Construction loans also emphasize builder reputation, project scope, and feasibility more than personal income or DTI. After completion, the loan is usually refinanced into a long-term mortgage or DSCR loan. This two-step financing model provides better alignment with real-world construction needs.
What credit score is needed to qualify for new construction financing?
A credit score of 660 or higher is typically required for construction financing. Still, we evaluate the full picture—including builder experience, project documentation, liquidity, and exit strategy. If you’re just below the credit threshold, other strengths may offset the risk. These loans are designed for builders and real estate investors who may not have traditional W-2 income. Solid planning and thorough documentation matter more than perfect credit. Presenting a professional loan package and reliable contractor can lead to better terms, faster closings, and flexible structuring.
Are construction loans available to small business owners or just individuals?
Yes, small business owners are fully eligible for construction loans. In fact, many borrowers use LLCs or corporations to fund STRs, duplexes, and other development projects. A personal guarantee from someone with at least 20–25% ownership is usually required. Our underwriting focuses on the project’s viability—builder credentials, budget, timeline—not your tax returns. Business owners benefit from a structure that fits their operations and goals. Whether you're scaling a portfolio or building a one-time property, we provide draw-based funding tailored for investors and entrepreneurs who build.
What is the typical loan rate for construction financing?
Typical construction loan rates start around 5.50%, with final pricing based on credit score, loan size, builder experience, and project risk. These loans are interest-only during the build phase, reducing monthly payments while construction is underway. Once the build is complete, borrowers typically refinance into a DSCR loan or long-term mortgage. Our team tailors every rate based on market conditions and the strength of your proposal. The clearer your project plan—budget, schedule, exit—the more competitive your rate. We also offer quick closings and flexible draw schedules.
What types of loans are best for new construction projects in Mississippi?
The best loans for new construction projects in Mississippi are interest-only draw loans that release funds based on build progress. These are ideal for STRs on the Gulf Coast, duplexes in Jackson, or infill projects in Hattiesburg. We finance up to 85% of the land cost and 100% of vertical construction. After the build, borrowers typically refinance into a long-term mortgage or DSCR loan. Our Mississippi lending options are built for speed, flexibility, and phased execution. Whether you're a first-time investor or an experienced developer, we structure loans around your real timeline—not bank bureaucracy.
Explore new construction loans and other Airbnb loans in neighboring states like Idaho and Wyoming to explore more options beyond Montana.
