New Construction Loans in New Jersey

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.

GET A QUOTE

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?

Construction loans require a licensed general contractor, building permits, architectural plans, and a detailed budget. Most lenders expect you to either own the land or be under contract. A minimum credit score of 660 and a down payment of 15%–20% are common. At BNB Lending, funds are released in draws based on construction phases. We also look at builder history, liquidity, and market comps. The more structured your plan, the faster you can get funded. We prioritize speed and clarity—so you can start building without unnecessary delays.

How do home construction loans differ from traditional financing options?

Home construction loans are designed for phased projects and disburse funds in draws, unlike traditional loans which fund in full at closing. These loans are interest-only during the build phase, reducing early cash flow strain. Underwriting is based more on the project and contractor than on personal income or W-2s. After construction is complete, most borrowers refinance into a DSCR or fixed-rate mortgage. This two-step structure offers flexibility, especially for STRs and real estate investors who need capital to match construction milestones—not a one-size-fits-all solution.

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

Most construction loans require a credit score of 660 or higher. That said, we evaluate the full deal—not just your FICO. We assess builder experience, project budget, draw schedule, and reserves. Even with a score slightly below the benchmark, a well-documented plan can make the difference. Our approach is designed for real estate investors and builders, not just salaried borrowers. With the right team and paperwork in place, we can often fund strong projects with creative structuring. Good credit helps—but it’s not the only thing we look at.

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

Absolutely. Construction loans are available to small business owners, LLCs, and corporations—not just individuals. We lend to businesses building STRs, duplexes, or multi-family properties. A personal guarantor with 20–25% ownership is typically required. We focus on your project’s viability—not your tax return. This makes our loans perfect for developers and real estate entrepreneurs who may not qualify with traditional banks. If you have the plan, permits, and builder lined up, we can help you move fast with flexible terms and minimal documentation requirements.

What is the typical loan rate for construction financing?

Construction loan rates typically start at 5.50%, depending on credit score, builder qualifications, and project complexity. These loans are interest-only during the build, which helps preserve working capital and manage monthly payments. After the project is complete, many borrowers refinance into DSCR or traditional mortgages. We tailor rates to your risk profile, draw schedule, and location. Strong documentation—especially a detailed budget and experienced builder—often leads to better pricing. Our model supports quick closings with no prepayment penalties and rates that make sense for short-term builds.

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

The best loans for new construction projects in New Jersey are draw-based, interest-only construction loans that disburse capital as milestones are reached. These loans are ideal for STRs in the Jersey Shore, duplexes near Newark, or new builds in suburban areas. We finance up to 85% of land acquisition and 100% of vertical construction costs. After completion, borrowers typically refinance into DSCR loans or fixed-rate mortgage products. Our New Jersey construction financing is structured to support fast-moving projects and eliminate the friction common with bank loans.

Explore new construction loans and other Airbnb loans in neighboring states like New Jersey and Connecticut to strengthen your strategy beyond New York.