New Construction Loans in Texas
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.
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!
Frequently Asked Questions
What are the requirements for getting a construction loan?
To secure a construction loan, you’ll need approved building plans, a licensed contractor, a line-item construction budget, and permits. Most lenders require a credit score of at least 660 and 15%–20% down. You also need to either own the land or be under contract. BNB Lending funds projects in draws that align with key milestones. We evaluate builder experience, project scope, reserves, and comps. Strong documentation improves approval speed and pricing. Our process supports fast-moving builders and investor-focused development timelines.
How do home construction loans differ from traditional financing options?
Home construction loans differ from traditional loans in structure and purpose. They disburse funds in stages during the build and require only interest payments until completion. Traditional loans fund in full at closing and begin amortizing immediately. Construction financing is based on builder qualifications, project documentation, and your construction timeline—not W-2 income or DTI. After the build is finished, borrowers typically refinance into a DSCR or fixed-rate mortgage. This phased approach gives you more control over timing and cash flow.
What credit score is needed to qualify for new construction financing?
A credit score of 660 is generally required, but we review the entire deal—not just your credit. Builder experience, liquidity, and how well your documents are organized all influence approval. If your score is slightly below the mark but your project is strong, we may still fund it. We’re structured for investors and professionals who don’t always fit traditional lending boxes. Good planning and execution matter more than perfect credit.
Are construction loans available to small business owners or just individuals?
Yes—construction loans are available to both individuals and business entities such as LLCs and corporations. Most of our borrowers operate through business structures and we welcome that. A personal guarantor with 20–25% ownership is usually required. We underwrite based on builder qualifications, budget, and project details—not tax returns. Whether you're a developer, STR host, or builder scaling up, we provide business-friendly loan terms with draw schedules designed for real-world construction.
What is the typical loan rate for construction financing?
Construction loan rates typically start at 5.50%, depending on builder strength, credit, and project scope. These loans are interest-only during the build, helping you conserve capital until the property is rentable or sellable. After completion, borrowers often refinance into DSCR or long-term fixed-rate mortgage products. We evaluate pricing based on the quality of documentation, exit strategy, and timeline. Prepared borrowers with experienced teams often qualify for better terms and faster funding.
What types of loans are best for new construction projects in Texas?
The best loans for new construction projects in Texas are draw-based, interest-only construction loans that release funds as work progresses. Whether you're building STRs in Hill Country, duplexes in Austin, or multifamily projects in Dallas or Houston, we finance up to 85% of land value and 100% of vertical costs. After completion, borrowers typically refinance into DSCR or fixed-rate mortgage loans. Our Texas loan programs offer speed, structure, and flexibility—making it easier for investors to scale efficiently.
