New Construction Loans in Utah
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?
Construction loans in Utah require a complete loan package including architectural plans, building permits, a licensed contractor agreement, and a detailed construction budget. Most lenders expect a credit score of 660 or higher, along with a 15%–20% down payment. You must own the land or have it under contract. A clearly defined draw schedule is critical to managing funds. Utah borrowers with strong documentation and experienced builders often see quicker approvals and more favorable terms.
How do home construction loans differ from traditional financing options?
In Utah, home construction loans are structured to match real build timelines. Instead of receiving the full loan amount upfront like with a traditional mortgage, construction funds are released in phases. During the build, borrowers make interest-only payments. Once the home is completed, most Utah borrowers refinance into long-term mortgage options such as DSCR or 30-year fixed loans. This structure is ideal for keeping cash flow manageable while a project is in progress.
What credit score is needed to qualify for new construction financing?
For Utah construction loans, most lenders look for a credit score of 660 or higher. However, approvals are based on more than just credit. Builder credentials, documentation quality, liquidity, and project planning all carry significant weight. At BNB Lending, Utah borrowers with clear exit strategies and strong packages often qualify even if their credit is borderline. We understand the unique pace and structure of building in Utah and prioritize real project readiness over rigid scoring.
Are construction loans available to small business owners or just individuals?
New construction loans in Utah are available to individuals, LLCs, and corporations. Many of our Utah borrowers operate as business entities and provide a personal guarantee from a majority stakeholder. These loans are ideal for developers and STR investors working across Park City, Moab, or Salt Lake City. Utah business owners benefit from draw-based financing that allows them to keep projects moving without relying on traditional W-2 income or tax returns.
What is the typical loan rate for construction financing?
Construction loan rates in Utah generally start around 5.50%, depending on borrower profile, project size, and builder experience. These loans are interest-only during the construction phase and are repaid or refinanced upon project completion. Utah-based projects with well-organized documents, clear draw schedules, and experienced teams often qualify for faster closings and stronger terms. After completion, borrowers usually refinance into DSCR loans or long-term fixed-rate mortgages to lock in stability.
What types of loans are best for new construction projects in Utah?
The best loans for new construction projects in Utah are phased draw loans with interest-only terms. These loans are ideal for building STRs in St. George, cabins in the Wasatch Range, or multifamily units in Salt Lake County. We fund up to 85% of the land value and 100% of vertical construction costs. Utah borrowers benefit from a fast, streamlined approval process and investor-friendly terms. Our construction loans are built to scale with your portfolio.
