Construction Loans: BUILD SPEC

Project Loans (SPEC or Pre-Sold) for builders and real estate investors



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Great Pricing
 4.99% - 8.99% rate1

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Great Terms
14 or 16 months no interest payments

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Great Service
same day draws possible


CONSTRUCTION LOANS AVAILABLE FOR: houses, duplexes, triplex, quad's, 5+ unit


Estimate Your Loan







Loan Size
$75,000 - $765,000
90% (100% land subordination)
Term  10 months + 4 month extension
Recourse Limited recourse possible
Reserves/Deposit None
Origination Fee 2% (pay at maturity)
Interest Rate 1 4.99% - 8.99%
Pay Rate 0.00% (no monthly payments)
Other Third-party costs, $500 underwriting fee, extension fee
1 4.99% first month, increase 0.5% monthly up to 8.99% max assuming no default.


Loan Size
Up to $2,500,000
90% (100% land subordination)
Term  12 months + 4 month extension
Recourse Limited recourse possible
Reserves/Deposit None
Origination Fee 2% (pay at maturity)
Interest Rate 1 4.99% - 8.99%
Pay Rate 0.00% (no monthly payments)
Other Third-party costs, $500 underwriting fee, extension fee
1 4.99% first month, increase 0.5% monthly up to 8.99% max assuming no default.

Get Started


We can give you a dedicated loan officer. PHONE, EMAIL, or .


See how much you can get.


Apply online.


Paper application.

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BFI excels. Across the board. Top to Bottom.


Money Icon Bank-like rates
Money Icon No "Dutch Interest"
Money Icon No interest on interest
Money Icon No prepayment penalties
Money Icon No escrow/reserve accounts


Money Icon No monthly interest payments (14 or 16 months, depending on loan size)
Money Icon Limited recourse available
World Icon FLEXIBLE – if building "for-sale" or "for-rent" residential and need something talk to us!
Money Icon Brokers Protected


Money Icon 90% LTC maximum for repeat clients
Money Icon 100% LTC maximum with land subordination
Money Icon Upfront loan fees and interest may be financeable in addition to other costs
Money Icon TRANSPARENT: Online Estimator

Speed & Reliability

Money Icon We are a Direct / Balance Sheet Lender
Watch Icon Same day draws possible
Watch Icon Upfront Approval Speed: target is receipt of 3rd party valuation + 2 business days
Watch Icon Specialized: Our focus is SPEC loans
Watch Icon Have a dedicated loan representative


Construction Loan We will finance up to 75% of land costs (plus up to 100% of vertical costs) for qualified builders.
Subordination / Seller Financing This is a way to get more financing! The land seller is essentially providing seller-financing on ALL the land while Builder Finance may provide nearly ALL the funds for vertical construction. We can work with a land seller to help make this happen by providing necessary paperwork.
Land Loan

Loans available for Acquisition & Development or Land Inventory.

Contact Us for more details.

Equity First

After a loan is approved, the loan amount is set. Total costs minus the loan amount is what we call the “equity”. The borrower fulfills this equity need first. Then we fund 100% of the remaining costs according to an approved budget. The land can cover the equity requirement.



Submit a draw request. We fund it then we inspect to confirm completion. See Draws for notes and exceptions.

Draws requiring an inspection cost $125 each. 


Interest & Fees

During the initial term and first extension, all interest and loan fees may accrue to the balance of the loan and be paid off at maturity.


General Contractor

With each draw request the GC and/or the borrower will provide a General Contractor Consent and Acknowledgment. See Draws for how GC fees may be paid by us.

We like to work with qualified General Contractors.

We can help you win Fee Business. Team up with an investor – domestic or foreign – and we can be your lender.

We can help you with your own Spec Construction Loan Projects. If you know how to build and what to build, we would like to be your lender.

Start building a relationship with Builder Finance Inc. Let’s work together on fee business and your spec projects.

This FAQ is as of May 2021 and is subject to change without notice. This FAQ will supersede any verbal conversations with BFI, but not more recent written communication with BFI.

WHO can borrow?

Borrowers are strictly organized as business entities – primarily limited liability companies (LLC’s).

WHAT are loans for?

We lend for the construction of 1-4 unit, “single-family” homes and 5+ unit multifamily residential structures. Loans for similar but different purposes such as land inventory loans and model homes are available on a case-by-case basis. All lending is strictly for business purposes – borrowers that sell or rent their projects – we DO NOT lend to owner-occupants.

Any non-residential portions of a structure such as ground floor retail will be assigned no value for underwriting purposes.


Our target timing is tied to receipt of the final appraisal:

  • Appraisal +1 business day: contact applicant with loan decision/loan size.
  • Appraisal +2 business days: deliver loan documents.

Timing may slip but generally not by more than a day. For us to be this fast, you would need to promptly provide needed items.


Our minimum loan size is $75,000. Our maximum is increasing, so please speak with a loan representative.

Loans are sized first and foremost based upon building experience and repayments to BFI. From there, adjustments are made based upon financials, the market, and a background search. Please refer to our Lending Matrix for specifics. Note that loan size will be constrained to a maximum LTV, the requirement that the borrower have a minimum amount of equity in the project as a percentage of total cost.


Loan interest and upfront fee stated on our Terms page are essentially set in stone for everyone; an exception is unlikely but not impossible for a high volume of extraordinarily safe loans. Most other costs are pass-through expenses such as title and recording fees.


To qualify for a BFI loan without an exception, the following must be true:

  • The members of the borrowing entity and/or their general contractor have the requisite building experience.
  • The population within a 3-mile radius is at least 3,000.
  • The population within a 3-mile radius is expected to be roughly flat or to increase over the next 5 years.
  • There are zero felony convictions for fraud or misrepresentation concerning owners of the borrower.
  • There are zero material misrepresentations in the loan application.

A loan may also be declined for reasons determined by BFI, at its sole and absolute discretion, on case-by-case basis. Commonly, such declines are based around our belief that the loan would be problematic: unlikely to payoff within 14 months of closing and/or while outstanding likely to require an extraordinary amount of BFI staff time in “hand-holding” or “process clarifications” with the borrower.

Note that available loan proceeds may be adjusted based upon a variety of factors. For example, there is no minimum credit score to qualify, but if the credit score is low it may diminish loan size. Refer to our Lending Matrix for details or use our Loan Estimator.


Loan documents provide borrowers with an initial period plus one extension option of 4 months. Any additional extension(s) would be available at the sole and absolute discretion of Builder Finance Inc. and would likely be subject to: ongoing loan performance, a satisfactory re-evaluation of the property, execution and timely delivery of proper extension documentation, and pay-down of all accrued interest. Any such additional extension(s) are subject to an extension fee and an increase in the interest rate. 


We will lend to investors that work with qualified general contractors consistent with our Lending Matrix and Loan Estimator.

Note that if ownership is comprised of only foreign investors, the maximum LTC is typically limited to no more than 60%.


BFI will work directly with qualified general contractors or with investors teamed with qualified general contractors. For the later, BFI will let certain qualifications of the G.C. boost the qualifications of the borrower. Consistent with the Loan Estimator, BFI will consider: the G.C.’s years in single-family construction; homes completed; if part of the G.C.’s income is contingent on sale of the home; the extent to which the G.C. has worked on loans that were repaid to BFI; if the G.C. is bonded; and if the G.C. has a clean background.


Yes, we do business through referrals and brokers!

We have a simple, straightforward process to compensate referrals. Contact BFI or fill out our Referral Form. After completing a background search that reveals no felony breach of trust convictions, BFI will provide a referral partner with our ICCA Agreement which we would co-sign subject to the terms and conditions of the ICCA. This agreement spells out compensation and, as a written contract, provides peace of mind.


Yes, we finance modular.

For modular projects, BFI makes production deposits and payment loan disbursements directly to the modular manufacturer. BFI will need a letter from the manufacturer stating, among other things, that upon payment of the production deposit, the home will be produced and upon the final payment the home will be delivered and set on site. We can provide the necessary letters / paperwork.


There are adjustments to our process for loans made at or above certain LTV thresholds (and/or below certain Minimum Equity thresholds) – all of which are consistent with our Lending Matrix.

  • Above 60% LTV (and/or above 75% LTC), BFI may fund the 5 largest budget line items directly to the supplier(s), trade(s), and/or general contractor.
  • Above 70% LTV (and/or above 84% LTC), BFI may fund all draws directly to the supplier(s), trade(s), and/or general contractor. BFI may limit funding for self-performed work.
  • At or above 67% LTV (and/or above 82% LTC), BFI may require full recourse.


At a minimum, loans are what we call “limited” recourse. If not limited recourse, loans will be fully-recourse to each guarantor on a joint and several basis.

Limited recourse means that the guarantor(s) guaranty completion of the project and that the loan is otherwise non-recourse to the guarantor(s) with the exception of “bad-boy” non-recourse carve-outs: recourse liability for transfer of any interest in the property or the borrower; the incurrence of any additional debt by the borrower; fraud; gross negligence; misconduct; misrepresentation; inappropriate handling of buyer deposits; misapplication of funds; voluntary and/or involuntary bankruptcy; physical waste of the Property; and the “bad faith” contesting of any foreclosure.


If you apply for a loan and the house is already partially built, BFI may be more conservative.


We require a certain amount of “skin in the game” before we fund. Typically, this most often means the borrower pays for part or all of the land and then we fund all approved costs thereafter. On our Lending Matrix, Minimum Equity is depicted as a percentage of the approved budget, calculated as 1 minus LTC. If you will receive seller financing on the land refer to the next item.


We finance up to 75% of land value as part of a construction loan. Other types of land financing would be made on a case-by-case basis.


Yes, it is possible. Please speak with a representative about 5-Year Lines or about combining seller financing on the land with a loan from us.


Please review Draws for details.