Builder Model / Spec Loan
Spec Home Construction Loan – Builder Development & Model Home Financing
For a Rate and Fees quote call
800-390-7536
Building a spec house before a buyer is under contract? Normandy’s spec home construction loan provides reliable spec home financing for builders and developers who need capital to keep their pipeline moving. Whether you’re constructing a model home for a new community or a build to sell property for resale, our builder construction financing is structured around how builders actually work.
New builders are considered — no prior track record required. Our builder development loan programs close fast with minimal documentation requirements so you can focus on building, not paperwork. This is a business-purpose loan designed for speculative residential construction. Interest-only payments are based on funds actually advanced — so you’re never paying on money you haven’t used yet. With loan amounts up to $10,000,000, Normandy’s spec home financing scales with your pipeline.
Rates and Fees
(Based on credit score, income, savings and LTV)
- Rates: Prime Rate plus 2.95% to 3.95%
- Loan Fee: 1.50% to 2.00%
- Application Fee: $495 (Inspection fee may apply)
- Fast Track Closing Fee: $1,250
- Underwriting Fee: $495
*65% maximum loan to value on loan amounts up to $1,000,000, 60% maximum loan to value on loan amounts over $1,000,000
General Guidelines*
- Loan amounts from $95,000 to $10,000,000
- Loan amounts up to 65%* of the appraised value or 75% loan to cost, whichever is less.
- Cross collateralization considered on other properties for maximum or greater loan amounts, loan to values, or loan to cost
- Construction completion available (construction has begun)
- No minimum FICO required for consideration
- Loans are available to Borrowers with excellent to less than perfect credit (subject to underwriting)
- Limited income, self-employed, and full income documentation programs available
- Land purchase may be included in the construction loan
- Deal directly with the Loan Officer/Underwriter
- Foreign Nationals are eligible for this program
- Fast pre-qualification, typically within 3 to 5 business days, closing typically within 30 days (fast track closings in 14 +/- days available if certain criteria is met)
- Flexible draw schedules
- Do not need to be a licensed Builder to qualify
- New Builders will be considered
- 1 to 4 family homes. For 5+ units, refer to Commercial Construction
- 12 month construction term with extensions available
- Interest only payments based on funds advanced
*All rates and terms subject to change without notice
Loans Available in the Following States
- AK
- AL
- CA
- CO
- CT
- DE
- FL
- GA
- HI
- IA
- ID
- IN
- KS
- KY
- MA
- MD
- ME
- MI
- MO
- MS
- MT
- NC
- NE
- NJ
- NM
- NY
- OH
- OK
- OR
- PA
- RI
- SC
- TN
- UT
- VA
- WA
- WV
- WY
Frequently Asked Questions
Spec & Model Home Construction Loans
What is a spec home construction loan?
A spec home construction loan (short for speculative) funds construction of a home built without a pre-committed buyer. It’s structured as a build to sell loan — you build, then sell. Normandy’s spec house loan programs are designed for builders maintaining an active pipeline of new residential properties.
What is the difference between a spec loan and a model home financing loan?
A spec home construction loan is for a standard home being built for eventual sale. Model home financing is for homes used to showcase a development or community. Normandy offers both under its builder construction financing programs.
Do I need prior builder experience?
No. New builders are considered for Normandy’s builder development loan programs. Your project details and exit strategy matter more than years on record.
What are the rates on a spec loan?
Rates start at Prime + 1.5% (Wall Street Journal Prime Rate). Origination fees typically range from 1.5 to 2.5 points. All rates subject to change without notice.
How is interest calculated?
Interest-only payments are based on funds actually advanced — not the full loan amount. This keeps carrying costs low during the speculative home construction phase.
For a Rate and Fees quote call
800-390-7536
Builder Spec Construction Loan
This program is designed to provide a business loan to a Builder or individual for the construction of a model or spec home for resale.
General Guidelines*
- Loan amounts from $95,000 to $5,000,000
- Loan amounts up to 65%* of the appraised value or 75% loan to cost, whichever is less.
- Cross collateralization considered on other properties for maximum or greater loan amounts, loan to values, or loan to cost
- No minimum FICO required for consideration
- Loans are available to Borrowers with excellent to less than perfect credit (subject to underwriting)
- Limited income, self-employed, and full income documentation programs available
- Land purchase may be included in the construction loan
- Deal directly with the Loan Officer/Underwriter
- Foreign Nationals are eligible for this program
- Fast pre-qualification, typically within 3 to 5 business days, closing typically within 30 days (fast track closings in 14 +/- days available if certain criteria is met)
- Flexible draw schedules
- Do not need to be a licensed Builder to qualify
- New Builders will be considered
- 1 to 4 family homes. For 5+ units, refer to Commercial Construction
- 12 month construction term with extensions available
- Interest only payments based on funds advanced
*All rates and terms subject to change without notice
Rates and Fees
(Based on credit score, income, savings and LTV)
- Rates: Prime Rate plus 2.95% to 3.95%
- Loan Fee: 1.50% to 2.00%
- Application Fee: $495 (Inspection fee may apply)
- Fast Track Closing Fee: $1,250
- Underwriting Fee: $495
*65% maximum loan to value on loan amounts up to $1,000,000, 60% maximum loan to value on loan amounts over $1,000,000