New Construction Loans in New Mexico
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 a licensed builder, approved permits, building plans, and a full project budget. Land must be owned or under contract, and most lenders expect a minimum credit score of 660 with 15%–20% down. We release funds in phases, matching your construction schedule. We also review builder experience, comps, reserves, and your intended exit strategy. Our process moves quickly when documentation is complete and well-organized. Whether you're building a custom home, STR, or multifamily unit, we fund your project with terms that support speed and control.
How do home construction loans differ from traditional financing options?
Home construction loans differ from traditional loans by offering phased funding during the build and requiring only interest payments until completion. Traditional mortgages fund in full at closing and begin amortizing right away. Construction financing is focused on the builder, project plan, and construction timeline rather than on personal income. This makes it ideal for STRs, custom developments, and phased real estate projects. After the build is complete, borrowers typically refinance into a long-term mortgage or DSCR loan. It’s a two-step structure designed for flexibility and efficiency.
What credit score is needed to qualify for new construction financing?
A credit score of 660 is typically required to qualify for new construction financing, but we don’t stop at the number. We look at the project’s scope, your builder’s credentials, liquidity, and how solid your plan is. A slightly lower score can often be offset by strong reserves or experience. If the paperwork is ready and the plan is real, we can structure a loan that fits. At BNB Lending, we work with investors and builders who need a smart, flexible path to capital—not rigid credit box rules.
Are construction loans available to small business owners or just individuals?
Yes—construction loans are available to both small business owners and individuals. We frequently lend to LLCs, corporations, and real estate investors with solid projects in place. A personal guarantor is typically required when lending to an entity with 20–25% ownership. These loans are ideal for STR developers, full-time flippers, or small business builders who need phased funding without bank bureaucracy. We underwrite based on project viability, builder experience, and reserves—not just income documentation. This is business-friendly financing, designed to support real growth.
What is the typical loan rate for construction financing?
Typical construction loan rates start around 5.50% and vary based on credit score, project scope, builder history, and draw schedule. These loans are interest-only during the build, keeping early costs low while you execute. Once the structure is complete, borrowers usually refinance into a DSCR loan or long-term mortgage. We evaluate each loan individually and price based on documentation quality and execution risk. Strong applicants benefit from faster closings and better rates. Our flexible funding model is built to serve fast-moving investors and builders—not institutional red tape.
What types of loans are best for new construction projects in New Mexico?
The best loans for new construction projects in New Mexico are interest-only, draw-based construction loans that release funds as phases are completed. These are ideal for STRs in Santa Fe, casitas in Taos, or multifamily builds in Albuquerque. We finance up to 85% of land value and 100% of vertical construction costs. After completion, borrowers often refinance into long-term mortgages or DSCR loans. Our New Mexico loan programs are structured to reduce early capital strain and match funding to your real construction timeline—so you stay on pace and on budget.
Explore new construction loans and other STR loans in neighboring states like South Carolina and Virginia to scale your presence beyond North Carolina.
