New Construction Loans in Pennsylvania

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 get approved for a construction loan, you’ll need a licensed contractor, architectural plans, building permits, and a comprehensive budget. Most lenders also expect a 660+ credit score and 15%–20% down. You must own or have a contract for the land. We issue funds in draws based on your project timeline. We evaluate builder experience, local comps, and liquidity. Organized documentation and a realistic timeline can help you close faster and with better terms. Our process supports both speed and transparency from quote to funding.

How do home construction loans differ from traditional financing options?

Home construction loans are funded in stages and typically offer interest-only payments during the build phase. Traditional loans fund in full at closing and begin amortized payments immediately. Construction financing focuses on the project—not just your personal income. This makes it ideal for STR builders and real estate investors. After the home is completed, most borrowers refinance into DSCR or fixed-rate mortgage loans. The two-step structure improves cash flow, increases flexibility, and better aligns capital with project milestones.

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

A credit score of 660 is generally required to qualify for new construction financing. That said, your credit is just one part of the equation. We also review builder qualifications, draw schedule, liquidity, and comps. If your credit is close to the minimum but other factors are strong, we may still approve your loan. We prioritize deal structure and execution potential—not just a single number. If the plan is solid and the paperwork is tight, we move fast and structure terms that make sense.

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

Construction loans are available to both individuals and business entities like LLCs or corporations. Many of our clients are STR investors and developers who operate through business structures. A personal guarantor with 20–25% ownership is typically required. We underwrite based on the builder, project budget, liquidity, and timeline—not W-2 income. Our model is built to support professionals and business owners scaling their portfolios. If you have a strong plan and the team to execute it, we’ll help you get funded—quickly and clearly.

What is the typical loan rate for construction financing?

Construction loan rates typically start around 5.50%, depending on credit, builder experience, and project size. These loans are interest-only during the build phase, keeping early-stage expenses lower. Once construction is complete, most borrowers refinance into DSCR or long-term fixed mortgage products. At BNB Lending, we tailor rates based on risk, documentation, and project timeline. Organized packages with strong builders and exit plans often qualify for better terms and faster closings. Our goal is to help you build with speed, flexibility, and full control.

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

The best loans for new construction projects in Pennsylvania are interest-only draw loans that fund your project in stages. Whether you're building a STR in the Poconos, a duplex in Philadelphia, or a multifamily property in Pittsburgh, we provide up to 85% of the land value and 100% of vertical construction. Once complete, you can refinance into a DSCR or fixed-rate mortgage. Our Pennsylvania programs offer fast approvals, low documentation, and flexible terms to match real investor timelines. We help you move from blueprint to closing—without the usual banking delays.

Explore new construction loans and other short-term rental loans in neighboring states like New York , New Jersey , Delaware , Maryland , West Virginia , and Ohio to expand beyond Pennsylvania.