Home Builder Spec Home Loans

Home builder spec home loans are available on the Internet, and most include a convenient application process. Users looking for financing for an upcoming building project can find a lender that will allow him to begin his payments after the construction has been completed. 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.

An applicant can get home builder spec home loans for as much as 1.5 million dollars. Land equity and prepaid costs can be used as a down payment for some deals. But the builder must have an average or better credit rating score and provide a 10 percent post-closing liquidity of the total amount. He must also have a 15 percent minimum gross profit margin to qualify. Some lenders also require that the applicant have a certain number of years' experience, or a co-signer with home-building experience, in order to qualify.

Applicants can hold up to ten contracts at one time, enabling them to begin more than one construction project at a time, as long as he meets the other qualifications. 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. The total amount of home builder spec home loans a person can take out at one time may equal a sum of no more than 1.5 million dollars no matter how many houses they have being built. Once a person applies for a contract, the lender will work with him to process the paperwork and to help him get the most from his loan and glorify God at the same time.

In Luke 14:27, Jesus gives us advice about building: "Which of you, intending to build a tower, sitteth not down first, and counteth the cost, whether he have sufficient to finish it?" That's what makes taking out home builder spec home loans so important. Each person must first sit down and count the cost. Without the right kinds of financing, many projects would fail before they began. The right financing can make the difference in any construction business.

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