New Construction Loans in Missouri
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?
Construction loan approval depends on your ability to submit a licensed contractor agreement, project budget, building permits, and architectural plans. Most lenders also require a 660+ credit score, land ownership or contract, and at least 15% down. Funds are issued in draws tied to build stages—such as pouring the foundation or installing drywall. We also assess builder credentials and your overall exit plan. Organized documents and a clear timeline increase your chances of approval. Our process is fast, flexible, and built for investors ready to break ground.
How do home construction loans differ from traditional financing options?
Home construction loans differ from traditional mortgage loans by offering phased funding tied to the build timeline. These loans are interest-only during construction and disburse funds as you complete specific milestones. In contrast, traditional loans are issued in full at closing and start amortizing immediately. Construction loans also focus more on builder experience and project plans than W-2 income. After the project is finished, you refinance into a DSCR or long-term mortgage. This structure gives you more control during construction and makes it easier to manage your build’s cash flow.
What credit score is needed to qualify for new construction financing?
Most construction loans require a credit score of at least 660, though strong reserves, a quality contractor, and a complete build plan can compensate for slightly lower scores. We evaluate the whole deal—your draw schedule, builder reputation, and market comps—not just your credit report. Our goal is to fund qualified projects efficiently, even if your score isn’t perfect. Well-prepared borrowers with reliable partners and solid exit plans can often qualify for favorable terms, even without traditional income or flawless credit. It’s all about execution and documentation.
Are construction loans available to small business owners or just individuals?
Construction loans are fully available to business owners and investors operating under LLCs or corporations. A personal guarantor with 20–25% ownership is typically required. These loans are designed for developers, STR investors, and real estate professionals who don’t always have traditional W-2 income. We focus on your budget, permits, builder team, and financial reserves. Business borrowers benefit from our flexible underwriting and fast closings. Whether you're scaling a portfolio or funding your first build, our construction loans are structured to support business growth and real estate strategy.
What is the typical loan rate for construction financing?
Construction financing rates generally start around 5.50%. Your final rate depends on credit score, loan size, location, and project complexity. These loans are interest-only during construction, helping you manage cash flow until the property is completed. Once the build is finished, most borrowers refinance into a DSCR or long-term mortgage. We review builder qualifications, timeline, and market data when assigning pricing. Our team moves quickly—especially when your documents are complete. Competitive rates and flexible structures help keep your project profitable and on track.
What types of loans are best for new construction projects in Missouri?
The best loans for new construction projects in Missouri are interest-only draw loans that fund land acquisition and vertical construction in stages. These are ideal for STRs in the Ozarks, duplexes in Kansas City, or infill builds in St. Louis. We lend up to 85% of the land value and 100% of construction costs. Once complete, you can refinance into a DSCR loan or fixed-rate mortgage. Missouri investors choose these loans for their flexibility, speed, and ability to align with project phases. No prepayment penalties and quick closings keep things moving forward.
Explore new construction loans and other STR loans in neighboring states like Iowa and Kansas to grow your portfolio beyond Nebraska.
