Home
Loan Products
New ConstructionDSCR RentalBridgeFix & FlipBuild to Rent
Who We Are
What We DoMeet the TeamWhere We Lend
Broker Partners
Loan Calculators
ConstructionDSCR Rental
Client Portal
Submit DrawsLoan Diligence
Apply Now

Spec Home Construction Loans

Finance speculative residential builds from lot acquisition through certificate of occupancy. Structured draws, no prepayment penalty, and the flexibility to build and sell on your timeline.

Build to Sell With Confidence

A spec home is a residential property built without a pre-committed buyer. The builder identifies the lot, designs the home, and constructs it to sell on the open market. It takes capital, experience, and the right lending partner to execute consistently.

Our spec home construction loans provide the leverage you need to move from lot acquisition through vertical construction and into the sale. Funding is released through a draw schedule tied to construction milestones, so you only pay interest on what you've drawn. This keeps your carrying costs predictable and your capital efficient.

Unlike conventional lenders, we underwrite based on the project and the builder, not just the borrower's personal balance sheet. If the deal makes sense and you have the track record to back it up, we can move quickly. Learn more about how we measure leverage using LTC vs. LTV.

Loan Range

$150,000 to $5,000,000 per loan. Multi-loan structures available for builders running multiple specs.

Term

12-18 months with extension options

Closing Speed

As fast as 21 days

Draw Schedule

Milestone-based draws, funded as fast as 48 hours

What Sets Us Apart

  • Up to 90% LTC on spec builds with strong borrower profiles
  • No prepayment penalty. Sell the home and pay off the loan with zero additional cost.
  • Draw-based funding tied to construction milestones, keeping carry costs low
  • Entity-friendly. Close in your LLC, LP, or corporation.
  • National lender covering 40 states plus DC
  • Repeat borrower programs for builders scaling their spec pipeline

Who This Is For

Our spec home construction loans are designed for experienced builders who know their market and have a track record of delivering completed projects on time and on budget.

  • Minimum 5 completed residential construction or renovation projects in the last 3 years
  • Borrowing through a business entity (LLC, LP, corporation)
  • Clear scope of work, itemized budget, and realistic timeline
  • Minimum 680 FICO score

Building your first spec home? See our first-time builder construction loan program for builders with fewer than 5 completed projects.

Program Details

Spec Home Loan Parameters

Max LTC
Up to 90%
Max LTARV
Up to 75%
Min FICO
680
Loan Range
$150K - $5M
Term
12-18 Months
Prepayment Penalty
None
A spec home construction loan finances the building of a residential property without a pre-committed buyer. The builder constructs the home speculatively and sells it on the open market after completion. Funding is released through a draw schedule tied to construction milestones, so you only pay interest on what you've drawn.
Spec home construction loans are available up to 90% of loan-to-cost (LTC) and 75% of the loan-to-after-repair-value (LTARV). Actual leverage depends on borrower experience, credit profile, and project details. Learn the difference between LTC, LTV, and LTARV.
Borrowers should have completed at least 5 residential construction or renovation projects within the last 3 years. Builders with a deeper track record may qualify for improved leverage and pricing. Building your first spec home? See our first-time builder construction loan program.
No. There is no prepayment penalty on our spec home construction loans. If you sell the property before the loan term expires, you pay it off with no additional cost. This gives builders full flexibility to list and close on their timeline.
Yes. We offer multi-loan structures for builders running several spec projects simultaneously. Repeat borrowers benefit from streamlined underwriting, faster closings, and competitive pricing as they scale their pipeline. Contact us to discuss portfolio-level structuring.

Ready to Build Your Next Spec Home?

Apply Now Estimate Your Rate