A spec (investment) construction loan is viewed as a more risky loan by most lenders. The rate can be higher and the terms may vary more than an owner occupied property. As is with other loans, the terms and conditions of the loan will be determined by the creditworthiness, the loan to value ratios and the overall package.

Spec loans are construction only loans and may require a lender to furnish them a commitment letter to pay off the construction loan with permanent financing at the completion of construction. Working with several local and national sources, we can provide loans for most all real estate transactions, but our specialty is construction and construction to permanent financing.

We pride ourselves in our ability to work with many variations of loans and match you and your project with the best source of funds. Please check out the other pages of our web page for additional information. The other pages to check will be under Land Loans, Construction Loans, Owner Builder Loans, Spec Home Loans and Manufactured Housing.

Down payment: The down payment will usually vary from 10 to 30%. If cash is not readily available there are several different options that we can offer the lender for equity in lieu of cash.

Rates: Our lenders for the Spec loans will usually not penalize the builder in rate. One point to remember is that construction loan rates can change daily. To give a guideline, the rate for construction lending has been as low as 6.99% this year.

Pre-qualifying

One of the most important steps in purchasing a home is to be pre- qualified or pre-approved. This step can eliminate wasted time in the purchase transaction. A pre-approval process can also be helpful in structuring your final goal. You may find something showing up on you credit report that is incorrect, or may need to do some debt consolidation in order to qualify for the price range you were interested in. We are there to assist and advise with any challenges that may come up.

A pre-qualification can be handled by telephone. This is followed up by a loan package mailed to you overnight along with the application, disclosures and a letter with a list of items that will be needed to complete the transaction. As soon as the documents are returned to us we are able to acquire an official pre-approval in writing from an investor within just a few hours. More complicated packages may require a few days. In any event, we meet our deadlines and commitments without any undue stress for anyone involved.

Please call us today or use our secure online pre-qualification form to get pre-qualified for your home.