Single-home spec builders
A builder taking on one spec home at a time who wants a clear budget, draw schedule and sale exit.
Business-purpose · Build to sell
Spec construction loans for builders who build to sell.
Business-purpose construction financing for one spec home or a full pipeline — underwritten on the project, your experience and the sale exit.
How it works.
A spec construction loan finances a home built without a contracted buyer. The builder funds the project through construction, lists the finished home and repays the loan from the sale. Because the loan is business-purpose, underwriting focuses on the deal: the construction budget, the projected completed value, the builder's track record and how the loan will be repaid.
One home or a pipeline. A first spec home is reviewed on its own merits. Builders running several homes at once are reviewed on capacity — liquidity, completed projects and how many active builds they can manage — and organized files make each subsequent project easier to move.
How draws work. Funds are not released in one lump sum. The construction budget becomes a draw schedule; as work is completed, an inspection confirms progress and the next draw is released. Interest is generally charged on the funds drawn, so a well-built budget and realistic timeline matter as much as the loan amount.
Exit strategy. The primary exit is the sale of the finished home. If the market shifts, some builders hold the home as a rental and refinance into a long-term rental loan — that path is covered in the build-to-rent financing guide and is easiest when it is considered before construction starts.
Who it fits
Where this program does the most work.
Pipeline builders
Builders running multiple homes in a subdivision or across markets who need consistent, repeatable financing.
Builders entering new markets
Experienced builders expanding into new states, for qualifying business-purpose projects nationwide.
Builders with a backup hold plan
Projects where a rental exit is a realistic alternative if the sale timeline extends.
Guideline snapshot
Documentation checklist for a spec file.
- Loan purpose
- Business-purpose only — borrowing entity typically an LLC or corporation
- Experience
- Schedule of completed projects with addresses, costs and sale or rental outcome
- Construction budget
- Line-item budget and builder's contract or cost breakdown
- Plans & permits
- Plans, specifications and permit status
- Land position
- Lot ownership or purchase contract, and any existing liens
- Value
- Appraisal or as-completed value supported by comparable sales
- Liquidity
- Bank or asset statements showing reserves and funds for any required equity
- Exit
- Sale plan and timeline, with any alternative hold plan
- Loan-to-cost
- Up to 85% LTC on qualifying projects
- Loan-to-value
- Up to 90% LTV on qualifying projects
- Loan amounts
- $75,000 to $200 million
- Terms
- 12 to 36 months
- Rates
- Starting at 8.75% for qualifying borrowers and projects; your rate depends on experience, leverage, market and project
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.
Business-purpose loans only. Not available for consumer, personal, family or household purposes. Maximum leverage, loan amounts, terms and starting rates apply to the most qualified borrowers and projects, are not available in every scenario, and are subject to change without notice. Mike Keys, NMLS #2795829 | Clear Rate Mortgage, LLC, NMLS #2470446. Equal Housing Opportunity.
Spec Construction Loans FAQ
Questions borrowers ask.
What is a spec construction loan?
A business-purpose loan that finances construction of a home built for sale without a contracted buyer. It is repaid when the finished home sells.
Do I need experience to get a spec loan?
Completed-project experience strengthens the file and affects available terms. Newer builders may be reviewed case by case depending on the program, partners and liquidity.
How are draws released?
The approved budget becomes a draw schedule. After each phase is completed, an inspection verifies progress before the next draw is funded.
Is the lot or land counted toward my equity?
Owned land is often considered in the project's equity position. How it is counted depends on program guidelines and the land's value and lien status.
Is this available in every state?
These business-purpose programs are available for qualifying projects nationwide, subject to program, property and lender guidelines.
What if the home doesn't sell quickly?
Extension options vary by program. Some builders hold the finished home as a rental and refinance into a long-term rental loan; planning that alternative early keeps options open.
What are current rates and leverage?
Programs offer up to 85% loan-to-cost, up to 90% loan-to-value, $75,000 to $200 million loan amounts, 12 to 36 month terms and rates starting at 8.75% for qualifying projects. Your exact terms depend on experience, market and project.
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