New Construction Loans in Vermont

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?

Construction loans require you to submit a full set of architectural plans, permits, a licensed contractor agreement, and a detailed budget. Lenders also typically ask for a 660+ credit score and 15%–20% down payment. You must own the land or have a purchase agreement in place. We fund projects in draws as key stages are completed. Strong documentation helps shorten timelines and improve terms. BNB Lending is structured to get builders moving quickly without unnecessary back-and-forth.

How do home construction loans differ from traditional financing options?

Home construction loans are disbursed in phases as the build progresses, with interest-only payments until the project is complete. Traditional loans provide a lump sum at closing and begin amortized payments immediately. Construction loans are based on the project’s feasibility, builder strength, and scope—not your W-2 or personal debt ratio. After construction, you refinance into a long-term mortgage or DSCR loan. This structure improves cash flow and aligns funding with real project milestones.

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

Most construction lenders require a credit score of at least 660. However, BNB Lending also evaluates builder experience, available liquidity, the budget, and your exit plan. Even if your credit is slightly below, strong supporting documents can still qualify you. Our process is built for investors and professionals who may not meet rigid banking standards. If your construction timeline, draw structure, and builder credentials are clear, we’ll likely find a way to fund your deal.

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

Construction loans are absolutely available to small business owners and entities like LLCs or corporations. Many of our borrowers operate under business structures and are required to provide a personal guarantee from someone with 20–25% ownership. We underwrite based on the builder, budget, and liquidity—not tax returns. This flexibility supports real estate professionals and STR investors working at scale. Whether you're new or experienced, we’ll tailor a solution that fits your business model.

What is the typical loan rate for construction financing?

Construction loans typically start at 5.50%, with the final rate determined by credit profile, documentation quality, builder background, and project complexity. These loans are interest-only during the build, which helps preserve working capital early on. Once the home is complete, borrowers usually refinance into long-term mortgages or DSCR products. Clean packages with experienced teams often receive faster closings and more favorable terms. BNB Lending structures loans to support speed, alignment, and investor outcomes.

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

The best loans for new construction projects in Vermont are interest-only draw loans that disburse funding in stages. Whether you're building STRs in Stowe, ADUs near Burlington, or multifamily properties in Montpelier, we fund up to 85% of land value and 100% of vertical construction costs. After completion, borrowers typically refinance into DSCR or fixed-rate mortgage loans. Our Vermont loan programs offer quick closings, flexible structuring, and business-friendly underwriting designed for real estate professionals building value across the state.

Explore new construction loans and other short-term rental loans in neighboring states like New York , New Hampshire , and Massachusetts to strengthen your reach beyond Vermont.