New Construction Loans in Montana
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 requires several essentials: a licensed builder, a full construction budget, architectural plans, and building permits. Most lenders also ask for 15%–20% down and a credit score of 660+. The land must be owned or under contract. Funds are issued in draws as key stages of the project are completed. We also evaluate builder experience, liquidity, and comps. A clearly documented project timeline and exit strategy help streamline approval. BNB Lending works quickly to structure deals that align with your investment goals and construction pace.
How do home construction loans differ from traditional financing options?
Home construction loans provide funds in phases and only charge interest during the build. This differs from traditional mortgages, which are fully disbursed at closing and require full principal and interest payments right away. Construction loans focus more on the project’s viability—budget, contractor credentials, build scope—than on borrower income. These loans are ideal for STRs, custom builds, and real estate investments. After the project is complete, borrowers often refinance into a fixed-rate mortgage or DSCR loan. The staged structure offers flexibility and better cash flow management during development.
What credit score is needed to qualify for new construction financing?
Generally, a credit score of 660 or higher is required for new construction loans. However, your overall application carries more weight than credit alone. We consider builder experience, liquidity, comps, and your draw schedule. If your credit is just below 660, strong reserves and professional planning may help you qualify. Higher credit scores can lower rates and speed up the process. At BNB Lending, we serve builders and investors who might not meet bank standards but present well-organized, feasible projects. Credit matters—but it’s not the only factor.
Are construction loans available to small business owners or just individuals?
Construction loans are available to small business owners, real estate investors, and individuals. Many borrowers use LLCs or corporations to structure their projects. A personal guarantor with 20–25% ownership is typically required. We focus on your builder, budget, and project viability—not your W-2 income. Whether you're scaling a rental portfolio or launching a one-off STR build, we offer flexible draw-based funding. Our process works well for businesses that prioritize speed, phased funding, and limited red tape. You bring the project—we’ll bring the financing that fits.
What is the typical loan rate for construction financing?
Construction loan rates generally start around 5.50%, with adjustments based on credit score, project size, and timeline. These loans are interest-only during the build, which helps keep monthly costs low. Once your project is complete, you can refinance into a DSCR or conventional mortgage. We determine final pricing by reviewing builder experience, draw schedules, market comps, and risk. Stronger packages—clear plans, permits, and exit strategy—often receive better rates and faster turnarounds. BNB Lending tailors every quote to the project so you get efficient capital and flexible terms.
What types of loans are best for new construction projects in Montana?
The best loans for new construction projects in Montana are draw-based, interest-only construction loans that release funds in stages. Whether you’re building a short-term rental in Whitefish, a cabin in Bozeman, or a duplex in Missoula, these loans cover up to 85% of the land and 100% of the vertical build. Once construction is complete, borrowers often refinance into long-term mortgages. Our Montana loan programs are designed for speed, flexibility, and investor alignment. We help builders manage costs, timelines, and capital flow without the delays of traditional lending.
Explore new construction loans and other short-term rental loans in neighboring states like California and Arizona to strengthen your presence beyond Nevada.
