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Construction Loans

Construction Loans in Oregon

Ground-up construction financing for Oregon real estate investors. Fund new builds from lot purchase through completion.

Get Pre-Qualified →Call (732) 754-2144

Why Oregon Is a Strong Market for New Construction

Oregon offers investors access to the Pacific Northwest market, with Portland anchoring a tech-driven economy boosted by companies like Intel, Nike, and a growing startup ecosystem. The state has no sales tax, which contributes to its appeal for residents and renters. Bend has become a hotspot for remote workers and outdoor enthusiasts. DSCR loans are popular in Oregon because the state high income tax rates (up to 9.9%) make no-income-verification financing particularly attractive for investors.

Oregon offers real estate investors significant opportunities in new construction - from build-to-rent single-family homes to infill development in growing metro areas. A construction loan lets you finance ground-up projects with draw-based funding, so you only pay interest on what's been disbursed. Sinai Capital shops your Oregon construction deal to 50+ lenders to secure the best rate and highest leverage for your project.

Oregon Real Estate Market at a Glance

Median Home Price

$475,000

Median Rent

$1,800

Avg Cap Rate

5.0%

Foreclosure Type

Both

State Income Tax

Yes

Landlord Friendly

Moderate

Portland multifamily properties remain in high demand despite rent control regulations, with the city strong job market and limited new construction keeping vacancy rates low.

Top Oregon Markets for New Construction

Portland, OR

Active construction market with strong demand for new builds

Salem, OR

Active construction market with strong demand for new builds

Eugene, OR

Active construction market with strong demand for new builds

Bend, OR

Active construction market with strong demand for new builds

Medford, OR

Active construction market with strong demand for new builds

Construction Loan Requirements in Oregon

Loan Terms12-24 months
Loan-to-Cost (LTC)Up to 85%
Interest Rates9% - 14% (varies by lender and experience)
Minimum Credit Score680+ (some lenders accept 660)
Time to Close21-30 days
Draw Schedule4-6 draws tied to construction milestones
Plans & PermitsRequired - architectural plans, building permits, and contractor bids
Loan Amounts$150,000 - $10,000,000+
Property TypesSingle-family, townhomes, multifamily, mixed-use
Experience1-2 completed projects preferred (not always required)

Oregon Lending Regulations & Tax Considerations

Foreclosure & Lending Laws

Oregon allows both judicial and non-judicial foreclosure. The state has enacted significant tenant protections, including statewide rent control (SB 608) that caps annual rent increases at 7% plus CPI for buildings over 15 years old. Oregon also requires "just cause" for evictions after the first year of tenancy.

Tax Implications for Investors

Oregon has state income tax rates up to 9.9%, among the highest in the nation, but has no state sales tax. Property tax rates average about 0.97% statewide. Measure 5 caps property taxes at $10 per $1,000 of real market value for school taxes and $5 per $1,000 for general government.

How to Get a Construction Loan in Oregon

1

Submit your project details

Fill out a quick pre-qualification form with your Oregon construction project details - lot info, project scope, budget, timeline, and contractor. Takes about 2 minutes. No credit pull required.

2

We shop 50+ lenders for your best terms

We send your deal to our network of 50+ lenders who finance Oregon construction projects. Each lender competes to offer you the best rate, highest LTC, and most favorable draw schedule.

3

Choose your terms and break ground

Pick the offer that works best for your Oregon build. We handle the paperwork and push your deal to closing. Most construction loans close in 21-30 days so you can start building.

Oregon Construction Loan FAQ

What is a construction loan for real estate investors in Oregon?+
A construction loan in Oregon is short-term financing designed to fund the ground-up construction of investment properties. Unlike a traditional mortgage, funds are disbursed in stages (called draws) as construction milestones are completed. These loans typically cover 12-24 months and can finance everything from lot acquisition through project completion.
How do construction loan draws work in Oregon?+
Construction loan draws in Oregon are disbursed on a schedule tied to project milestones - for example, foundation, framing, rough-in, and completion. After each phase is finished, a third-party inspector verifies the work, and the lender releases the next draw. You only pay interest on the funds that have been disbursed, not the full loan amount. Most lenders require 4-6 draws over the life of the project.
Can I finance the lot purchase with a construction loan in Oregon?+
Yes, many construction lenders in Oregon will finance the lot purchase as part of the construction loan. Typically, the lot cost is included in the total project budget and factored into the loan-to-cost (LTC) ratio. Some lenders will finance up to 85% of the combined lot and construction costs. If you already own the lot free and clear, you can often use your equity as part of your down payment.
What are construction loan rates in Oregon?+
Construction loan rates in Oregon typically range from 9% to 14%, depending on your experience, credit score, project scope, and loan-to-cost ratio. Rates are higher than permanent financing because construction loans carry more risk for lenders. Working with a broker like Sinai Capital who shops your deal to 50+ lenders helps you find the most competitive rate for your Oregon project.
Do I need construction experience to get a construction loan in Oregon?+
Experience requirements vary by lender. Some Oregon construction lenders require at least 1-2 completed projects, while others will work with first-time builders if you have a licensed general contractor, detailed plans, and strong financials. Having an experienced GC on your team significantly improves your approval odds and can help you secure better rates.
Can I use a construction loan for a build-to-rent project in Oregon?+
Yes, build-to-rent (BTR) construction loans are available in Oregon. These loans finance the construction of properties you intend to hold as rentals rather than sell. Many lenders offer a construction-to-permanent loan that converts into long-term DSCR financing once the property is completed and leased, saving you the cost of refinancing into a separate permanent loan.

Ready to Finance Your Oregon Construction Project?

We shop your Oregon deal to 50+ lenders to find you the best rate and highest leverage. No credit pull. No commitment. Takes 2 minutes.

Get Pre-Qualified →Call (732) 754-2144

Other Loan Products Available in Oregon

DSCR LoansBridge LoansFix-and-Flip LoansCash-Out RefinanceCommercial LoansPortfolio LoansForeign NationalBank Statement

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