New Construction Loans in Oregon

Frequently Asked Questions

What are the requirements for getting a construction loan?

Construction loans require a licensed builder, approved plans, permits, and a full construction budget. Most lenders expect the land to be owned or under contract. A credit score of 660 and 15%–20% down are standard. BNB Lending funds projects in draws that follow key phases—foundation, framing, mechanicals, and finish work. We also assess builder experience, project comps, and liquidity. Well-documented projects often close faster and qualify for better terms. We focus on simplicity, speed, and aligning funding with your construction schedule—not bank red tape.

How do home construction loans differ from traditional financing options?

Home construction loans are issued in phases and require interest-only payments during the build. Traditional loans offer full disbursement at closing and begin amortizing immediately. Construction loans prioritize project viability—builder experience, permits, and budget—over personal income or tax returns. After completion, the loan is typically refinanced into a long-term mortgage or DSCR product. This two-step structure helps manage cash flow, increase flexibility, and align capital with actual construction needs. It’s a preferred approach for STR builders, developers, and real estate investors alike.

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

A 660 credit score is commonly required for construction financing. That said, we don’t make decisions based on credit alone. Builder reputation, draw schedule, liquidity, and exit plan all influence approval. Even if your score is slightly below the mark, strong reserves or project documentation may still qualify you. At BNB Lending, we fund deals based on execution and planning—not just a number. If your paperwork is ready and your builder is experienced, we can often move fast with fair terms.

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

Construction loans are fully available to LLCs, corporations, and small business owners—not just individuals. We frequently fund builders and STR investors who operate under business entities. A personal guarantor with 20–25% ownership is typically required. Our underwriting focuses on the project—not on income verification. We evaluate your permits, budget, liquidity, and contractor. Business borrowers benefit from flexible terms, faster closings, and loans designed around investor timelines. Whether it’s your first project or part of a larger portfolio, we tailor solutions for business owners building real assets.

What is the typical loan rate for construction financing?

Construction financing rates generally start at 5.50%. Your final rate depends on your credit, builder experience, project size, and location. These loans are interest-only during construction, keeping early costs lower while your project takes shape. Once complete, most borrowers refinance into a DSCR or fixed-rate mortgage. We adjust pricing based on project quality, documentation, and execution risk. If your plan is clear and your builder reliable, we can close quickly and competitively. Our model is designed for real-world timelines—not bank delays.

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

The best loans for new construction projects in Oregon are draw-based construction loans that fund your build in stages. These loans work well for STRs in Bend, ADUs in Portland, or custom homes on the coast. We finance up to 85% of land value and 100% of vertical construction. After the project is complete, borrowers typically refinance into DSCR or traditional mortgage products. Our Oregon construction loans are built for flexibility, speed, and low documentation—so builders and investors can break ground without unnecessary friction.

Explore new construction loans and other STR loans in neighboring states like California , Nevada , Idaho , and Washington to strengthen your strategy beyond Oregon.