Spec home builders
Ground-up construction financing for one home or a full spec pipeline, structured around the sale exit and the next project.
Investor · Ground-up & build-to-rent
Ground-up capital for spec homes & BTR.
Flexible construction financing for one spec home or a full build-to-rent community — available to builders and investors in all 50 states, structured for repeat draws and fast closings to keep the pipeline moving.
How it works.
Spec and build-to-rent financing covers the gap between land or lot acquisition and a finished, rentable or sellable home. Unlike a consumer construction loan, these programs are underwritten on the project and the builder — the deal's loan-to-cost, the builder's track record and the exit strategy — rather than on personal tax-return income.
The program splits naturally into two exits. Build to sell: short-term ground-up capital for spec homes, repaid from the sale — often followed immediately by a buyer financed through the same office. Build to rent: construction capital that rolls into a permanent DSCR rental loan once the home is leased, letting a builder hold the asset instead of selling into a shifting market.
This structure is especially active in high-growth builder markets — Texas metros like Houston, DFW and San Antonio, Florida's Tampa, Orlando and Jacksonville corridors, metro Atlanta, Nashville, Charlotte and Raleigh, and Midwest rental markets like Columbus — where lot supply and rental demand both support repeated single-family and small-community projects. For repeat builders, the pipeline matters as much as any one deal: lenders that already know the builder close subsequent projects on shorter timelines with lighter re-underwriting.
Who it fits
Where this program does the most work.
Fix-to-rent investors
Rehab or light construction capital with a DSCR rental loan as the planned exit once the property is leased.
Build-to-rent developers
Ground-up capital for rental portfolios and BTR communities, with the permanent financing strategy set before the first draw.
Portfolio builders
Repeat draws and fast closings designed to keep multiple projects moving through the pipeline at once.
Guideline snapshot
What spec & BTR files typically look like.
- Coverage
- Available in all 50 states — including markets outside Clear Rate Mortgage's consumer lending footprint
- Loan to cost
- Up to roughly 85% of total project cost on stronger files
- Loan to value
- Up to roughly 90% of completed value on stronger files
- Loan amounts
- Program ranges spanning from about $75K single-home projects up to institutional-size BTR communities
- Terms
- Typically 12–36 month interest-only construction terms, with extensions depending on program
- Rates
- Starting around the high-8% range for the strongest builder files; pricing moves with experience, leverage and market
- Draws
- Draw-schedule funding with inspections; repeat builders often earn faster draw turnaround
- Qualification
- Underwritten on the project, builder experience, reserves and exit — not tax-return income
- Exit strategies
- Sale of the finished home, or refinance into a permanent DSCR rental loan for the hold
General ranges shown for orientation only. Guidelines, calculation methods, documentation, property eligibility, reserves, rates and terms vary by lender and program and are subject to change. This is not a pre-qualification, approval or commitment to lend.
Spec Home Financing & BTR Loans FAQ
Questions borrowers ask.
What's the difference between spec and BTR financing?
Same capital, different exit. Spec financing is repaid from the sale of the finished home. Build-to-rent keeps the property: construction funds the build, then the loan is typically refinanced into a permanent DSCR rental loan once the home is leased.
How much of the project cost can be financed?
Stronger files can reach roughly 85% loan-to-cost and 90% loan-to-value on the completed project. Actual leverage depends on builder experience, liquidity, market and program guidelines.
Do I qualify on my personal income?
No — these are project-based programs. Underwriting centers on the deal's cost and value, your experience as a builder, reserves and the exit strategy, rather than W-2 or tax-return income.
How long are the terms?
Typically 12 to 36 months of interest-only payments during construction, with extensions available on many programs. Longer holds usually roll into a permanent DSCR loan rather than extending the construction term repeatedly.
Can I run several projects at once?
Yes — portfolio and pipeline structures exist for repeat builders, and lenders that already know your track record generally close subsequent projects faster with lighter re-underwriting.
What happens when the home is finished?
On a sale exit, the buyer's financing pays off the construction loan at closing. On a hold exit, we structure the permanent DSCR refinance around the leased property — ideally planned before construction starts, not after.
Not sure which documentation path fits? That is the conversation.
Financing Provided Through
Clear Rate MortgageLicensed Mortgage Lender · NMLS #2470446
Mike Keys · NMLS #2795829 · Company NMLS #2470446
A boutique client experience, backed by a national lending platform.
- · Company licensed in 17 states
- · Broad portfolio of loan solutions
- · Experienced lending & operations team
- · Professional service from application through closing