1. Land Inventory or Land A&D Loans

Loans for land development, land A&D, land inventory, land acquisition, raw land, and horizontal improvements. Builder Finance is a lot loan lender. Also, (see next item) Builder Finance Inc. can provide land and construction financing as one loan.

Terms are flexible but standard loan sizing is the lesser of (a) 65% LTC and (b) 60% LTV based upon the as-is value of the land or, if the loan is funding horizontal improvements, 55% of the as-complete value. Refer to qualifications for possible adjustments.



9.99% Rate

(increases during extension)

Great Service

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  • More Information

    Builder Finance Inc. (BFI) provides land loans for land inventory and land loans for acquisition and development (A&D). BFI does not lend on unentitled land but will lend on land that is not yet fully entitled.

    With a BFI A&D loan, BFI will advance money on the land acquisition as well as horizontal improvements such as utility hookups, streets, curbs, gutters, and sewer as well as certain soft costs such as permitting fees associated with such work.

    BFI charges less than many lenders; BFI’s goal in providing land loans is to provide the related construction lending.

    To qualify for a land load, the individual(s) owning the borrower must be experienced, having built and sold at least 20 homes in the past 10 years. It also beneficial if that experience is in the subject market and includes experience with land projects.

    In order to qualify for a Loan, the following conditions below should be met:

    Eventual Vertical The land loan will result in vertical lending for Builder Finance Inc.
    Sponsor Experience Since 2011 Sponsor must have at least 20 residential properties that have built and sold or owned as rentals.
    Net Worth The domestic net worth of guarantor(s) excluding primary residence(s) must be at least $650,000.
    Credit Score The credit score of the highest income guarantor must be at least 660.

    If any one or more of the following are true, the proposed 65% LTC may be decreased:

    Population In a 3-mile radius population is under 25,000 and/or is expected to decline.
    Valuation The third-party valuation indicates the Property is non-conforming, decreasing market values, and/or that the sales value is based on a marketing time of 6 months or more.
    Sponsor Liquidity Liquidity is under $75,000 based on last 2 month’s bank statements.
    Background Issue(s) Sponsor has: conviction for fraud, misrepresentation, or felony; real estate liens; bad references; delinquent real estate loan; late payment to BFI; bankruptcy or foreclosure within the past 10 years; and/or recent litigation with a financial institution.

2. Land Component of Spec Construction

Construction Loans

  • 75%+100%: BFI will lend up to 75% of land value + 100% of costs in accordance with an approved budget.
  • 100%: If you obtain third-party land financing (e.g. loan from land seller), BFI may offer a 100% LTC loan.

Multi-Year Lines

BFI will fund up to 100% of land and 100% of construction costs. Land must not be an outsized cost, or no more than 1/3 of total project costs. If building out a subdivision, additional funds maybe available for horizontal development.

3. Liquidity Access Lines

SPEC Line of Credit clients and select other clients, we offer an additional benefit: liquidity access lines for land acquisition. More information We’ll advance given 1 business day of notice so clients can move fast – no waiting for an appraisal.