New Construction Loans in Wisconsin
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?
New construction loans in Wisconsin require architectural plans, a detailed construction budget, a licensed builder contract, and approved permits. Most Wisconsin lenders want to see a minimum credit score of 660 and a down payment of at least 15%. Land must already be owned or under contract. A clear draw schedule tied to major build milestones helps maintain funding and reduces risk. Wisconsin borrowers who present a complete and well-structured package can expect faster closings and stronger loan terms.
How do home construction loans differ from traditional financing options?
Home construction loans in Wisconsin release funds in stages, unlike traditional mortgages which fund in a lump sum. Borrowers make interest-only payments during the construction phase. Once the build is complete, they refinance into a long-term mortgage like a DSCR or 30-year fixed loan. Wisconsin developers benefit from this structure because it aligns cash flow with construction progress. Traditional loans are better for move-in-ready homes, while construction loans are designed for phased development.
What credit score is needed to qualify for new construction financing?
In Wisconsin, a credit score of 660 or above is typically required for construction loan approval. That said, lenders look at more than just FICO scores. Strong builder credentials, organized documentation, and sufficient liquidity can help offset a slightly lower credit score. Wisconsin borrowers with solid plans and experienced teams often qualify for favorable terms. BNB Lending focuses on project readiness and viability, not just credit history.
Are construction loans available to small business owners or just individuals?
Construction loans in Wisconsin are available to both individual borrowers and business entities like LLCs and corporations. Many Wisconsin investors prefer to build under an LLC for liability protection and tax efficiency. A personal guarantor is often required if borrowing through a company. The underwriting process focuses on builder strength, project scope, and the quality of your documentation—not just income. This flexibility makes Wisconsin construction financing ideal for STR investors and small-scale developers.
What is the typical loan rate for construction financing?
In Wisconsin, construction loan rates usually start around 5.50%. These loans are structured as interest-only during the construction period, giving borrowers more control over early-phase costs. After completion, most Wisconsin borrowers refinance into DSCR or long-term fixed-rate loans. Rates depend on credit score, builder track record, timeline, and documentation quality. Projects that are well-planned and well-documented often receive better pricing and move through underwriting faster.
What types of loans are best for new construction projects in Wisconsin?
The best loans for new construction projects in Wisconsin are draw-based, interest-only construction loans that align with building milestones. Whether you're constructing STRs near Wisconsin Dells, duplexes in Madison, or infill housing in Milwaukee, this structure helps fund projects efficiently. Our Wisconsin loan programs offer up to 85% financing on land and 100% of vertical construction costs. After the build, most borrowers refinance into long-term mortgage products. These loans are built to scale with your investment strategy.
