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Building homes

Spec construction, from plans to sold.

Financing to build homes before a buyer is under contract, with funds released in stages as construction moves forward.

The Basics

How draws work

Instead of receiving the full loan at closing, a builder receives funds in draws. Each draw usually follows an inspection confirming that a stage of work is complete, such as foundation, framing, or finish-out. The loan is typically repaid when the finished home sells.

Who it's for

Builders putting up homes without a buyer yet
Developers building several homes in a community
Experienced builders growing their pipeline
Builders who own a lot and are ready to start

What lenders typically review

Plans, specifications, and permits
Construction budget and timeline
Lot ownership or purchase
Your building experience
Projected value when completed

How It Works

From first call to closing.

Every deal is a little different. Here is the general path, and we will tailor it to you.

1
Share the project
Plans, budget, lot details, and timeline.
2
Review and appraise
An appraisal estimates the value of the finished home.
3
Close and build
Draws are released as inspections confirm progress.
4
Sell and repay
The loan is paid off when the home sells.

Good Questions

Spec Construction questions.

Have a question that is not here? Ask us. No question is too basic.

Ask a Question

Do I need to own the lot?

Not always. Some programs can include the lot purchase, and a lot you already own may count toward your equity. We will explain the options.

How fast are draws released?

Draw timing depends on the lender and the inspection schedule. We will walk you through the process before you start building.

Can I build more than one home at a time?

Many builders do. Lenders consider your experience and capacity when reviewing multiple projects.

Keep Exploring

Related programs.

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All loans are subject to credit approval, underwriting, and property review. Program availability, terms, and requirements vary and can change. This page is general information, not a commitment to lend. We will explain the requirements for any program before you apply.

Questions about spec construction financing?

Tell us what you are working on, and we will walk you through whether this program may fit.

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