New Construction Loans in Ohio

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?

To secure a construction loan, you’ll need detailed architectural plans, permits, a licensed builder, and a line-item budget. The land must be owned or under contract. Most lenders also require a minimum 660 credit score and 15%–20% down. At BNB Lending, we issue funds in draws aligned with the construction timeline. We evaluate your contractor’s experience, liquidity, exit strategy, and local market comps. Organized documentation and a clear project scope lead to faster approvals and smoother funding from start to finish.

How do home construction loans differ from traditional financing options?

Construction loans differ from traditional mortgage loans by disbursing funds in stages and requiring interest-only payments during the build. Traditional loans offer lump-sum funding at closing and begin amortized payments immediately. Construction loans are based more on builder credibility, project scope, and budget rather than income or DTI. Once construction is complete, borrowers usually refinance into a DSCR loan or long-term mortgage. This two-step process gives greater control over timelines, improves cash flow, and matches capital release with real-world project needs.

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

A 660 credit score is generally required to qualify for new construction financing. However, we evaluate the entire deal—not just your FICO. Builder qualifications, liquidity, draw schedule, and comps all factor in. If your credit is close but not ideal, strong reserves or experience may still get the loan approved. Our programs are designed for real estate investors, STR builders, and business owners who need funding based on execution, not employment. Credit matters, but the deal structure and prep matter more.

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

Construction loans are available to both individuals and business entities such as LLCs and corporations. Many of our borrowers are STR investors or developers who build under business structures. A personal guarantor with 20–25% ownership is typically required. We underwrite based on the project’s financials—not your W-2 income. If you’re a business owner with a licensed builder, a clear plan, and liquidity, we can structure a loan that fits your timeline and exit strategy. We make financing simple for operators—not just employees.

What is the typical loan rate for construction financing?

Construction financing typically starts at 5.50% and varies based on credit score, builder history, loan size, and project complexity. These loans are interest-only during the build, reducing upfront costs. Once your build is complete, most borrowers refinance into DSCR or long-term fixed mortgage products. Rates are influenced by documentation quality, exit plans, and location-specific risk. We tailor our pricing to each project, offering speed and structure that work with your business—not against it. Well-prepared borrowers often see faster closings and more favorable terms.

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

The best loans for new construction projects in Ohio are phased draw loans with interest-only payments during the build. These are perfect for STRs in Hocking Hills, duplexes in Columbus, or infill builds in Cincinnati. We finance up to 85% of land value and 100% of vertical construction. Once the home is complete, borrowers typically refinance into DSCR or traditional mortgage products. Our Ohio programs are structured for speed, flexibility, and investor alignment—so you can build quickly, minimize delays, and grow your portfolio with confidence.

Explore new construction loans and other short-term rental loans in neighboring states like Michigan , Pennsylvania , West Virginia , and Indiana to grow beyond Ohio.