Builder Sold Loan
Builder Sold Construction to Permanent Loan – New Construction Mortgage Financing
For a Rate and Fees quote call
800-390-7536
Already have a buyer under contract? Normandy’s builder sold loan is designed for builders who have a signed purchase agreement in place and need home construction financing to complete the build. Unlike a spec loan, the buyer is identified before construction begins — making this one of the most efficient forms of new construction mortgage financing available to active builders.
Our construction mortgage loan disburses funds in draws as work progresses, keeping your cash flow predictable and your buyer’s timeline intact. Once construction is complete, the construction to permanent loan structure means the buyer closes and the construction loan is paid off — clean and simple. With loan amounts up to $5,000,000 and new builders considered, Normandy’s builder financing programs work for builders at every level.
Our construction mortgage loan disburses funds in draws as work progresses, keeping your cash flow predictable and your buyer’s timeline intact. Once construction is complete, the construction to permanent loan structure means the buyer closes and the construction loan is paid off — clean and simple. With loan amounts up to $5,000,000 and new builders considered, Normandy’s builder financing programs work for builders at every level.
Rates and Fees
(Based on credit score, income, savings and LTV)
- Rates: Prime Rate plus 2.50% to 3.50%+
- Loan Fee: 1.50% to 2.00%+
- Application Fee: $495
- Fast Track Closing Fee: $1,250
- Underwriting Fee: $495
General Guidelines*
- Loan amounts from $95,000 to $5,000,000
- Loan amounts up to 75% of the contract price on conforming loan amounts, otherwise up to 70% of contract price. Cross collateralization considered on other properties, if needed, for maximum or greater loan amounts.
- Land purchase may be included in the construction loan. Please call for a quote.
- Foreign Nationals are eligible for this program
- Deal directly with the Loan Officer/Underwriter
- Full and Limited Income Documentation programs available
- Fast pre-qualification, typically within 3 – 5 business days, closing typically within 30 days (fast track closings 14+/- days available if certain criteria is met)
- Loans are available to Borrowers with excellent to less than perfect credit (subject to underwriting)
- Flexible draw schedules
- 1 to 4 family homes, refer to Commercial Construction for more than 4 units
- 12 month construction term with extensions available
- Interest only payments based on funds advanced
- New Builders will be considered
*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
- NM
- NJ
- NY
- OR
- OH
- OK
- PA
- SC
- TN
- UT
- RI
- VA
- WA
- WV
- WY
Frequently Asked Questions
Builder Sold Construction Loans
What is a builder sold construction loan?
A builder sold loan is a construction mortgage loan used when a builder has a signed purchase contract with an end buyer before construction begins. Because the exit is defined, Normandy’s builder financing programs offer favorable terms compared to a spec loan.
What is the difference between a builder sold loan and a construction to permanent loan?
A construction to permanent loan converts from a construction loan to a long-term mortgage after the home is complete — typically for the buyer. A builder sold loan funds the builder during construction; once complete, the end buyer closes on the property and pays off the construction loan.
Is this loan available for new builders?
Yes. New builders are considered for Normandy’s builder sold home construction financing program. Project details and the signed purchase agreement carry significant weight in the evaluation.
What are the rates?
Rates start at Prime + 1% (Wall Street Journal Prime Rate). Origination fees typically range from 1 to 2 points. All rates and terms subject to change without notice.
How are funds disbursed?
Funds are released in draws as each construction phase is completed and inspected — keeping your new construction mortgage financing aligned with actual build progress.
For a Rate and Fees quote call
800-390-7536
Builder / Sold Loan
This program is designed to provide a construction loan to a Builder who has a contract to sell the home once the property is completed.
General Guidelines*
- Loan amounts from $95,000 to $5,000,000
- Loan amounts up to 75% of the contract price on conforming loan amounts, otherwise up to 70% of contract price. Cross collateralization considered on other properties, if needed, for maximum or greater loan amounts.
- Land purchase may be included in the construction loan. Please call for a quote.
- Foreign Nationals are eligible for this program
- Deal directly with the Loan Officer/Underwriter
- Full and Limited Income Documentation programs available
- Fast pre-qualification, typically within 3 – 5 business days, closing typically within 30 days (fast track closings 14+/- days available if certain criteria is met)
- Loans are available to Borrowers with excellent to less than perfect credit (subject to underwriting)
- Flexible draw schedules
- 1 to 4 family homes, refer to Commercial Construction for more than 4 units
- 12 month construction term with extensions available
- Interest only payments based on funds advanced
- New Builders will be considered
*All rates and terms subject to change without notice
Rates and Fees
(Based on credit score, income, savings and LTV)
- Rates: Prime Rate plus 2.50% to 3.50%+
- Loan Fee: 1.50% to 2.00%+
- Application Fee: $495
- Fast Track Closing Fee: $1,250
- Underwriting Fee: $495