New Construction Loans in Rhode Island

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?


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Frequently Asked Questions

What are the requirements for getting a construction loan?

Construction loans require detailed architectural plans, a licensed builder, permits, and a clear construction budget. You must own or be under contract for the land. A credit score of 660 or higher is usually required, along with 15%–20% down. Funds are disbursed in draws based on build milestones. We also assess builder experience, liquidity, and project comps. If your paperwork is complete and your team is solid, approvals tend to move fast. Our goal is to help you launch with confidence and close without delays.

How do home construction loans differ from traditional financing options?

Home construction loans are disbursed in phases and typically require only interest payments during construction. Traditional mortgages fund fully at closing and require immediate amortized payments. Construction loans prioritize project viability—builder qualifications, permits, and plans—over income documentation. Once the project is complete, borrowers refinance into a DSCR loan or long-term mortgage. This approach improves cash flow and aligns funding with actual progress, making it ideal for STR developers and real estate investors building in stages.

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

A 660 credit score is the standard minimum for construction financing, but we look beyond credit alone. We evaluate builder reputation, project scope, draw schedule, and liquidity. A slightly lower score can be offset by strong reserves or excellent documentation. At BNB Lending, we work with builders and investors who may not meet bank standards but have well-structured deals. Credit is one piece of the puzzle—we prioritize real-world execution and reliable project planning.

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

Yes—construction loans are available to small business owners, LLCs, and corporations as well as individual borrowers. We lend to many STR developers and builders operating under business entities. A personal guarantor with 20–25% ownership is typically required. We focus on builder qualifications, budget clarity, and the project's financials—not your W-2 income. Our business-friendly programs are structured for growth, offering faster approvals, flexible draw schedules, and fewer hurdles than traditional bank lending.

What is the typical loan rate for construction financing?

Construction loans usually start around 5.50%, depending on project complexity, credit, liquidity, and builder experience. These loans are interest-only during the construction phase, helping borrowers conserve capital early on. Once construction wraps, borrowers typically refinance into DSCR or fixed-rate mortgage loans. At BNB Lending, we price each deal individually. Well-prepared projects with strong documentation and an experienced builder often qualify for better terms and quicker closings. We’re structured to match speed with precision.

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

The best loans for new construction projects in Rhode Island are interest-only draw loans that release capital as your build progresses. Whether you're constructing a coastal STR in Newport, a duplex in Providence, or an ADU in a suburban neighborhood, we fund up to 85% of land value and 100% of vertical construction costs. Once complete, you can refinance into a DSCR or fixed-rate mortgage. Our Rhode Island construction loan programs prioritize speed, simplicity, and investor alignment to help you build faster and more efficiently.

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