Builder Spec & Model Home Construction Loans in Virginia
Builder Spec Loan in Virginia
Building in Virginia starts with securing the right loan. Normandy’s spec home financing program is available to borrowers across Virginia — from Northern Virginia (DC Metro) to smaller residential markets throughout the state.
Spec construction is active in Virginia’s suburban growth corridors — Loudoun and Prince William Counties in Northern Virginia, Chesterfield County near Richmond, and Virginia Beach’s inland neighborhoods are all active markets.
Loan amounts from $95,000 to $5,000,000. Up to 65% of appraised value or 75% loan to cost, whichever is less. 12-month construction term; extensions available. Interest-only on funds advanced. Foreign nationals are eligible. Land purchase may be included. Limited income, self-employed, and full doc programs available. No builder license required.
Call 800-390-7536 or visit https://normandy.com/builder-model-spec-loan/ to pre-qualify. All Normandy loan programs: https://normandy.com/.
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
Virginia Construction Market & Regulatory Overview
Virginia’s construction activity is concentrated around the Washington D.C. metro in Northern Virginia, the Richmond growth market, Hampton Roads’ federal and military-driven residential demand, and Shenandoah Valley custom builds.
Building Code: Virginia Uniform Statewide Building Code (USBC), based on the International Residential Code with Virginia-specific modifications.
Permitting: Permits are issued through local county and city building departments under the USBC. Inspections are required at multiple construction stages.
Key construction considerations in Virginia include coastal storm and flood risk in Hampton Roads, high humidity statewide, and winter ice and snow events in Northern Virginia and the mountain regions. Normandy’s underwriting team works directly with borrowers — you deal with the loan officer and underwriter, not a call center.
Contractor Licensing in Virginia
Virginia contractors must be licensed through DPOR (Department of Professional and Occupational Regulation) as Class A, B, or C depending on project size and value.
Owner-Builder Note: Virginia allows owner-builders to construct a residence for personal use without a contractor license. The exemption does not extend to properties built for sale or rent.
Loans Available in the Following States
- Alaska (AK)
- Alabama (AL)
- California (CA)
- Colorado (CO)
- Connecticut (CT)
- Delaware (DE)
- Florida (FL)
- Georgia (GA)
- Hawaii (HI)
- Iowa (IA)
- Idaho (ID)
- Indiana (IN)
- Kansas (KS)
- Kentucky (KY)
- Massachusetts (MA)
- Maryland (MD)
- Maine (ME)
- Michigan (MI)
- Missouri (MO)
- Mississippi (MS)
- Montana (MT)
- North Carolina (NC)
- Nebraska (NE)
- New Jersey (NJ)
- New Mexico (NM)
- New York (NY)
- Ohio (OH)
- Oklahoma (OK)
- Oregon (OR)
- Pennsylvania (PA)
- Rhode Island (RI)
- South Carolina (SC)
- Tennessee (TN)
- Utah (UT)
- Virginia (VA)
- Washington (WA)
- West Virginia (WV)
- Wyoming (WY)
Frequently Asked Questions — Builder Spec Loan in Virginia
Q: What is a spec home construction loan in Virginia?
A: A spec home construction loan in Virginia is a business loan for building a residential property for resale without a committed end buyer at the start. Normandy finances through draw disbursements, with interest-only payments on advanced funds during the 12-month construction term.
Q: What does spec home financing cover in Virginia?
A: Spec home financing in Virginia covers 1–4 family residential construction. Loan amounts up to 65% of appraised value or 75% of loan to cost. Land purchase may be included. Cross-collateralization on other builder properties is considered for greater loan amounts.
Q: Do I need a contractor license for builder construction financing in Virginia?
A: No. A licensed builder designation is not required for Normandy’s builder construction financing in Virginia. New builders are considered. Self-employed borrowers and those with limited income documentation may qualify through alternative programs.
Q: What is a builder development loan in Virginia?
A: A builder development loan in Virginia is construction financing for a builder or investor constructing a 1–4 family property for sale. Normandy’s program features flexible draws, no minimum FICO for consideration, and loan amounts from $95,000 to $5,000,000.
Q: How does model home financing work in Virginia?
A: Model home financing in Virginia is structured as a 12-month construction loan. Draw disbursements at milestones fund the build. Cross-collateralization on other builder-owned properties may be available to support the loan. Call 800-390-7536 for a rate quote.