Spec Home Financing

Spec home loans:

What is a spec home ?
A spec house is a home that is built on speculation, or includes plans to build a house without a pre-sale of the building. After the spec house is finished, the buyer puts it up for sale. With this type of financial arrangement, a builder can finance up to 90 percent of his project. He can also draw requests for money online at any time during the construction phase.

How much can I finance ?
We can provide you with home builder spec home loans for multi-millions of dollars. Land equity and prepaid costs may also be used as a down payment for your spec deal. But the builder must have an average or better credit rating score and provide a 10 percent post-closing liquidity of the total amount. You must also have a 15 percent minimum gross profit margin to qualify. We also require that you have a certain number of years' experience, or a co-signer with home-building experience.

How many spec homes can be financed at once ?
You may hold up to ten contracts at one time, enabling you to begin more than one construction project at a time The terms are normally 12, 15, or 18 months, giving the home builder plenty of time to complete the project and sell the speculative house.

How can Luxury Mortgage Group help me succeed?
Financing your home builder spec home loan is a key component.  You will need to first sit down and count the costs associated with your project. Without the right kinds of financing, many projects would fail before they began. The right financing can make the difference in any construction business.  Luxury Mortgage Group will show you items you may have overlooked and make sure that your business plan is sound.