New Construction Loans in North Carolina

Frequently Asked Questions

What are the requirements for getting a construction loan?

To qualify for a construction loan, you’ll need approved architectural plans, permits, a licensed contractor, and a detailed project budget. Most lenders also expect at least 15% down, land ownership or a signed purchase agreement, and a minimum credit score of 660. We release funds in draws that align with your construction timeline. Our team also evaluates builder experience, comps, and liquidity. Strong documentation helps speed up approvals and leads to better terms. If you're ready to build, we’re ready to finance with efficiency and flexibility.

How do home construction loans differ from traditional financing options?

Home construction loans are issued in draws during the project, with interest-only payments required until completion. Traditional mortgages, by contrast, provide full funding upfront and begin amortization immediately. Construction loans prioritize project viability, builder qualifications, and budget structure over personal income documentation. After the home is finished, borrowers often refinance into DSCR or fixed-rate loans. This two-step approach allows you to conserve cash flow while maintaining control throughout the construction process. It’s the preferred path for real estate investors and short-term rental builders.

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

A 660 credit score is generally the minimum for construction financing, though approval isn’t based solely on credit. We also weigh builder credentials, liquidity, project scope, and draw schedule. If your score is slightly lower but you have solid documentation, there’s often a path forward. Our programs are designed for developers, STR investors, and business borrowers—not just W-2 employees. If your plan is solid and your builder experienced, we can often structure a loan with competitive terms and a fast timeline.

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

Construction loans are available to both individuals and business entities like LLCs and corporations. Many of our borrowers are STR operators or developers working under business structures. We require a personal guarantor with 20–25% ownership. Underwriting focuses on the project—not traditional W-2s or tax returns. Business owners benefit from fast approvals, flexible draw schedules, and funding designed for professional growth. Whether you're scaling a portfolio or breaking ground on your first build, our team will structure a solution that meets your timeline and investment goals.

What is the typical loan rate for construction financing?

Construction loan rates typically begin at 5.50% and are interest-only through the build phase. Final pricing depends on credit score, builder experience, project size, and market risk. These loans reduce early out-of-pocket costs and offer more flexibility than traditional financing. Once the home is completed, borrowers often refinance into DSCR loans or long-term mortgages. At BNB Lending, we tailor pricing to your timeline, draw schedule, and documentation strength. The more prepared you are, the faster we can close—and often at better rates.

What types of loans are best for new construction projects in North Carolina?

The best loans for new construction projects in North Carolina are draw-based, interest-only construction loans that disburse capital in stages. These are ideal for STRs in Asheville, coastal duplexes in Wilmington, or infill builds in Charlotte. We finance up to 85% of land acquisition and 100% of vertical construction costs. After completion, borrowers typically refinance into DSCR or fixed-rate mortgage loans. Our North Carolina construction loan programs prioritize fast approvals, flexible structuring, and reduced friction—so you can build faster and scale with confidence.

Explore new construction loans and other Airbnb loans in neighboring states like South Dakota and Minnesota to grow beyond North Dakota.