Spec Construction Loans

Sometimes residential homebuilders reach their bank credit limit just by buying land. Builders Capital can help by providing a Spec Construction Loan that lets them add value to each lot by constructing single-family homes for resale.

When building homes, our Spec Construction Loans open doors for builders and their investors. The project does not need to be pre-sold to qualify, so builders can sell the home for profit or build for investment purposes.

Program specs

Property Types:

• Single-family residences.
• 1 to 4 units.
• Non-rural.

Loan to Cost (LTC): 70% LTC.

Credit Score: 680 preferred.

Lot Acquisition: Finished lot purchase can be included; free and clear option available; subordinate land considered on a case by case basis.

Terms: 6 to 9 months (extensions available).

Documentation Required: Full documentation required.

Builder: 5+ years of experience preferred.

Loan Amounts: $50,000 to $600,000

Subordinate financing: Seller subordination will be considered on a case by case basis.

Looking for an option on a project that has been presold? Check out our Presold Construction Loans.