What a Build-to-Sell Loan Is
A build-to-sell loan provides short-term construction financing for builders and developers constructing homes intended for sale (spec building). It funds the build, then is repaid from sale proceeds.
Who It's For
- Spec builders and developers
- Investors constructing homes for resale
- Experienced builders with a track record
- Those needing fast, project-based construction capital
How It Works
Funds release in draws as construction progresses. Because the exit is the sale of the completed home, underwriting focuses on project economics — build costs, projected sale value, and the builder's experience. Terms are short-term, structured around the build-and-sell timeline.
Frequently Asked Questions
How is repayment structured?
The loan is short-term and repaid from the proceeds when the completed home sells. Underwriting focuses on the project's economics and your experience.
Do I need building experience?
Lenders generally favor builders with a track record, though terms vary. We can match you to lenders whose criteria fit your experience level.
How fast can funds be available?
Build-to-sell financing is often structured for speed, since spec projects are time-sensitive. Timelines depend on the lender and project.