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Spec Home Finance Programs
Spec Home Construction Financing is for builders and borrowers who are building a home for the purpose of resale or retained investment
NOTE: BUILDERS CAN BUILD THESE TO KEEP ARE INVESTMENT PROPERTIES, OR SELL THEM UPON COMPLETION
Mortgage Brokers specializing in Spec Home Finance Programs generally offer two different grades of Spec Home mortgages. The most popular is the newly announced Platinum Series of Owner-Builder Products. The Platinum Series has better rates and higher loan-to-values, but offers less flexibility for borrower documentation. The Standard Series offers greater loan flexibility with documentation and income requirements, but generally has a lower loan-to-value and higher interest rates. Platinum programs requires interest-only payments only on the amount of disbursed funds, while Standard requires interest-only payments on the entire gross loan amount.
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PLEASE NOTE: The information provided here is a sample of what might be available. It is not a guarantee of product availability or an offer to extend credit. Scenarios, rates, and guidelines vary depending on many factors including the state where the property is located, borrower's creditworthiness, assets, and current market conditions, among others.
Platinum Series
Spec Home Construction Programs.
- Stated Documentation Available on ALL SPEC PROJECTS
- Minimum 675 Credit Score
- 65% Loan-To-Value & 80% Loan-To-Cost
- Spec Homes for Sale or Retained Investment
- Self Build. No Contractor Needed!
- Non Arms-Length Transactions and Related Builders Acceptable!
- Six (6) Month Construction Term, extensions available
- Pay interest on disbursed funds only
Details:
All loans have their own details, guidelines, and fine print. Here is a sample of what you can expect with Platinum Owner-Builder Construction Finance Programs.
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Platinum
Program
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Minimum Credit Score
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Maximum Loan To Value
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Maximum Loan To Cost
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Variable Interest Rate
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Maximum Loan Amount
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P-SP08
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750
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65%
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80%
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Prime + 3
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$300k
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P-SP09
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725
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65%
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80%
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Prime + 3.5
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$300k
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P-SP10
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700
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65%
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80%
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Prime + 4
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$300k
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P-SP11
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675
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65%
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80%
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Prime + 4.5
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$300k
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Unlimited draws, requires 2% servicing fee.
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Stated Documentation available on all SPEC programs.
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*APR cannot be calculated because of the variable prime rate. The above information is not a rate quote nor an offer of credit. The data is offered as a sample of what might be available and is for informational purposes only. Please contact your lender for actual rate quotes and guidelines based on your individual project and circumstances.
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Platinum Spec Home Construction Program Parameters
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Property
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Single Family Residence (SFR) and Duplex stick-built or modular homes. Log cabins (with acceptable comps).
Appraised value based on a max of 5 acres with close, recent, and similar comparable sales. Properties classified as rural are not accepted.
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Loan Limits
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up to $300,000 based on program guidelines
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Credit Scores
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The borrower's middle score is used as the qualifying credit score when a tri-merged credit report is used.
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Lender Fees
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Lender charges servicing fee of 2 points for unlimited draws, 1 point lender fee, $450 processing fee & $100 document preparation fee.
Your Mortgage Broker or Lender may charge a mortgage broker fee or origination fee, plus applicable application and credit report fees.
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Terms
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Required payments are interest-only during construction, based on actual amount of disbursed funds. All loans are for construction term only and are not permanent mortgages. Your Mortgage Broker may also be able to obtain permanent financing at lower rates once construction project is complete.
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Subject To
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All loans are subject to builder approval, construction budget approval and acceptable appraisal review.
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Lending In
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Contact your specific lender to find out in which states they offer Spec Home Finance Loans. This is not an offer to lend.
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PLEASE NOTE: The information provided here is a sample of what might be available. It is not a guarantee of product availability or an offer to extend credit. Scenarios, rates, and guidelines vary depending on many factors including the state where the property is located, borrower's creditworthiness, assets, and current market conditions, among others.
Standard Series
Spec Home Construction Programs.
- No Income Verification!
- No Seasoning or Tracking of Funds Used to Close!
- No Asset Verification!
- No Reserve Requirements!
- No Debt Ratios Calculated!
- Non-Owner Occupied!
- Self Build or Third Party Builder
- Property May Be Sold or Held as Investment Upon Completion
- Six (6) Month Construction Term with Three Month Extension Option
Details:
All loans have their own details, guidelines, and fine print. Here is a sample of what you can expect with Standard Series Spec Home Construction Loans.
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Standard
Program
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Min. Credit Score
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Max. Loan To Value
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Max. Loan To Cost
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Interest
Rate
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Maximum Loan Amount
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S-SP1
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680
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65%
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80%
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5.99 / 8.69apr
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$600k
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S-SP2
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660
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65%
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75%
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6.99 / 9.81apr
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$600k
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S-SP3
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620
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65%
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70%
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7.99 / 11.04apr
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$600k
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S-SP4
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580
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65%
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65%
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8.99 / 12.36apr
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$600k
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S-SP5
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540
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60%
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60%
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9.99 / 12.62apr
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$600k
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Discount Points between 2 and 3% based on loan program.
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Broker Fees vary based on property location, loan amount, construction length, etc. Call your loan officer at 866-812-4826 to get an individual quote.
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*APR cannot be calculated because of the variable prime rate. The above information is not a rate quote nor an offer of credit. The data is offered as a sample of what might be available and is for informational purposes only. Please contact your lender for actual rate quotes and guidelines based on your individual project and circumstances.
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Standard Spec Home Construction Program Parameters
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Property
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Single Family Residence (SFR) and Duplex stick-built or modular homes.
Appraised value based on a max of 5 acres with close, recent, and similar comparable sales. Properties classified as rural are not accepted.
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Loan Limits
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$50k to $600k (see applicable adjustments below)
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Adjustments
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If loan amount is $325k-$425k, reduce Loan-to-Value and Loan-to-Cost by 5%.
If loan amount is $425k-$600k, reduce Loan-to-Value and Loan-to-Cost by 10%.
If borrower has no mortgage history, reduce Loan-to-Value and Loan-to-Cost by 5%.
If land to total cost ratio is greater than 50%, reduce Loan-to-Value and Loan-to-Cost by 5%.
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Credit Scores
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The borrower's middle score is used as the qualifying credit score when a tri-merged credit report is used. The highest middle is used if there are two borrowers on the loan.
Borrowers must have two years of seasoning on all bankruptcies.
Foreign Nationals without credit scores are acceptable, but are limited to Custom Program L-OB4 (see above).
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Lender Fees
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Lender charges $995 underwriting plan and review, $435 document review, plus applicable discount fees seen in matrix above.
Mortgage Brokers or Lenders may charge an origination fee or mortgage broker fee, plus applicable application and credit report fees.
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Terms
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Required payments are interest-only during construction, based on gross loan amount. All loans are for construction term only and are not permanent mortgages. Broker can also obtain permanent financing at lower rates once construction project is complete.
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100% CLTC
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100% requires closing costs down and full lot subordination. Equity required.
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Subject To
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All loans are subject to builder approval, construction budget approval and acceptable appraisal review.
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Lending In
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Contact your specific lender to find out in which states they offer Spec Home Finance Loans. This is not an offer to lend.
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PLEASE NOTE: The information provided here is a sample of what might be available. It is not a guarantee of product availability or an offer to extend credit. Scenarios, rates, and guidelines vary depending on many factors including the state where the property is located, borrower's creditworthiness, assets, and current market conditions, among others.
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