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Builder SPEC loans 90% of hard cost.

Construction loans throughout Texas

Construction Loans

Owner Builder Construction Loans


Call us today at 281-259-0400 for these special loans!

90% SPEC loans for builders
We know where to get this tough loan and we know the good and the bad sources

What down payment is required? - 10% x cost of land + 10% x cost to build (not including builder fee, engineering, plans, markup) . another way to say it is 90% of hard costs. Hard costs do not include builder fees, engineering, plans, interest, closing costs. They can include or not include land depending on ownership / purchase details.

What is the loan amount? - the smaller of 90% of hard costs or 80% of appraised value.

Can I roll in land costs? - Yes

What are the items I cannot roll into the construction budget? -

  1. Design Plans
  2. Engineering costs
  3. Permits
  4. Construction interest
  5. Loan costs
  6. Builder profit / fees
  7. Builders risk insurance
  8. Builders liability insurance fees

What are the loan fees? - Broker fees can be negotiated based on volume

Loan Costs for 6.5% interest rate. APR is 9.5%
Loan Amount Construction Fee Broker Fee Other Fees
$50k - $200k
standard appraisal, underwriting, title, etc
1.5% of loan
standard appraisal, underwriting, title, etc
1.25% of loan
standard appraisal, underwriting, title, etc

Loan Costs for 5.5% interest rate. APR is 10.4%
Loan Amount
Construction Fee
Broker Fee
Other Fees
$50k - $200k
standard appraisal, underwriting, title, etc
1.5% of loan
standard appraisal, underwriting, title, etc
1.25% of loan
standard appraisal, underwriting, title, etc

What is the construction rate? 5.5% or 6.5% depending on the chosed fee schedule.

When will my monthly bill be due? - on the same day your construction loan closed. There is a 10 day grace period. The bill will be send 10 days before it is due. If you need to request a special "due" date, please request this before the loan closes.

What documentation is required for the loan?
Financial Statement
3 years of entire personal tax return
3 years of tax returns for the company and other companies mentioned on Schedule E of personal tax return
Most recent Year end financial statement
Most recent quarter end financial statement
Inventory listing (contract or spec, percentage completed, dated completed)
Finalized cost breakdown of the construction.
Address and other info pertinent to the project

When does land "equity" not count toward downpayment? - Usually not but if it can be justified in the underwriter's mind, then maybe. Land equity that does not count would be if you are buying the land at a discounted price, then the difference between purchase price and land "value" would not count toward downpayment. Another case is when you bought the land 1-5 years ago at a certain price and now it is "worth" a higher price, that difference in purchase price and value will only count if the "value" is "reasonable".

How does a construction loan work? - Make sure you will qualify for a construction loan (we can help with that) then finalize house plans & construction budget, we get an appraisal for the house/land combo and the loan closed.

Can I roll in land costs? - Yes you can but you will have purchase the land at or before closing.

Can I roll in closing costs? - No

Can I get a construction loan with $0 down? - Yes you can, if you have equity in the land or if you are willing to have a CD with the investor. But remember that $0 down is not the same as $0 in the bank. You will need to have either or both cash reserves and cash flow.

How long does a construction loan take? - It depends on a few factors of timing and getting a complete loan package. It takes time to gather all the data of income, assets, builder profile, property value, construction plan and contract, title, etc. Most construction loans take around 4 weeks to go from application to closing, but this assumes that there are no major delays. A rush loan can take two weeks but this leaves no room for investors, underwriters, appraisers, title, broker being real busy or holidays or sickness or major problems.

Where can I get a construction loan? - Anywhere in Texas..

What is the application / underwriting / paperwork process? - The process is as follows …

  1. Fill out and send us a SPEC construction application
  2. (Prequalification is $75 and optional ...We pull your credit and do DTI calculation and LTV calculation and send file to underwriter for boarder line issues)
  3. You finalize house plans
  4. We send you fully typed loan application and disclosures to sign and return
  5. You send us income, bank, and other documents related to the contract, budget, property and loan
  6. If buying land with the transaction then you send us land purchase contract (it is recommended to put a 60 day (or longer) close date for the land close
  7. You send us a check for the appraisal and application (application fee refunded when loan closes) (some builders do appraisal after construction budget step) (appraisal takes 5-10 work days)
  8. You send us builders contract
  9. You send us 1-3 page construction budget
  10. We but all the loan information together and package it up for investors
  11. We submit to our investor's underwriters (it sits there 1-5 days)
  12. Underwriters send us loan conditions and we contact you
  13. We gather conditions from you & title & appraiser & your employer & payoff information (this takes 2-3 days)
  14. Underwriter submits for review of final approval (this takes 1-2 weeks)
  15. Title and investor prepares closing document (this takes 1-3 days)
  16. We schedule date and time for closing and let you know the final closing costs along with the amount of check to bring, if any
  17. You normally see the HUD settlement statement the day before closing
  18. You come to closing with spouse and sign final loan documents and agreements
  19. Bring drivers license to closing
  20. Bring bank check (made out to title company) or wire money to title company for cash to close, if any
  21. Loan is normally funded that day or the next

Am I paying interest on the full loan amount or the amount drawn to date? - on the amount drawn to date.



We handle ...

Mortgage in Spring Texas

Mortgage in The Woodlands Texas

Mortgage in Conroe Texas

Mortgage in Magnolia Texas

Mortgage in Tomball Texas

Mortgage in Houston Texas

Mortgage in Sugar Land Texas

Mortgage in San Antonio Texas

Mortgage in Austin Texas

Mortgage in Hill Country Texas

Mortgage in Dallas Texas

Mortgage in Fort Worth Texas

Mortgage in Cypress Texas

Mortgage in Will Texas

Mortgage in New Caney Texas

Mortgage in Katy Texas

Mortgage in Texas