Loan Terms:
- Loan Amount: $100K – $5M
- Loan Term: 12 – 24 Months (options for 19 months available)
- Interest Rates: Starting as low as 10.2%
- Interest Payment Structure: Interest-only payments on drawn funds
- Collateral: Non-owner-occupied properties, including:
- Single-Family Homes, Condos, Townhomes
- 1 – 4 Units
- Stick-built or Modular Construction
- Minimum Property Value: $150K (As-Completed Value)
- Loan-to-Cost (LTC): Up to 90%
- Loan-to-ARV (LTARV): Up to 70%
- Minimum FICO: 650
- Experience Requirements: Strong credit, liquidity, and fix-and-flip experience preferred
- Project Scope: Land development, knockdown deconstruction, or new construction
- Additional Options:
- Cashout refinance available
- Fast draw process with funds available in as little as four days
Rates And Terms Subject To Change
Understanding Residential Spec Loans
Residential Spec Loans are designed for builders and developers looking to construct speculative (spec) homes—single-family residences built without a committed buyer in place. These loans provide the capital you need to bring your vision to life, offering flexibility and financing tailored to the demands of the real estate market.
Key Features of Spec Loans:
- Short-Term Financing: Typically structured for 12–24 months, these loans align with the construction timeline.
- Collateral-Based: The property under construction usually serves as collateral, reducing the need for extensive additional guarantees.
- Draw Schedules: Funds are distributed incrementally, based on construction progress, ensuring alignment with project milestones.
Who Uses Spec Loans?
These loans are ideal for experienced builders who understand market demand and are confident in their ability to sell or refinance the property upon completion. Spec loans bridge the gap between planning and profit, empowering you to develop inventory without tying up all your resources.