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Spec home loans for your first spec build
Build a home to sell before you have a buyer. We fund 90% of your lot and build budget, and your first spec home can be your first build.
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Estimate only. Loan amount is 90% of lot price plus build budget. Business-purpose loans on investment property, not homes you will live in.
What a spec home is
A spec home is a house built on speculation: the builder starts without a buyer under contract and sells the home when it is finished or nearly finished. Spec construction loans pay for the lot and the build until the sale.
How spec home financing works with us
| Deal | Amount |
|---|---|
| Lot price | $120,000 |
| Build budget | $480,000 |
| Total cost | $600,000 |
| We fund 90% | $540,000 |
| Sale price when finished | $820,000 |
| You bring (10%) | $60,000 |
The build budget is paid in draws as each stage is completed. When the house sells, the loan is paid off from the sale.
How to finance a spec home with little cash
The cash you need is your 10% of the lot and build, plus closing costs and reserves to carry the loan while you build and sell. Use the calculator to see your number, and read construction loans with a low down payment.
Questions builders ask
Straight answers about spec home loans.
What is a spec home loan?
A construction loan for a home built to sell without a buyer lined up in advance.
How much of my build do you fund?
We fund 90% of your total cost: the lot price plus the build budget. You bring the other 10%.
Do I need building experience?
No. We lend to first-time builders with no completed projects, as well as to experienced builders.
How is the build budget paid out?
In draws. As each stage of the build is completed, the work is inspected and that stage's money is released.
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