Builder Finance

Construction Loans & Rental Loans
Builder Financial Inc, is the growing direct lender to Builders and investors for Houses & Multi-Unit Residential

 SPEC    LAND    FIX-FLIP    RENTAL   BUILD TO RENT


Application and Forms

Floating Rate
Prime +1.75% or +2.25% available

2.5%
Limit on total fees you pay

Same Day Draws 
Up to $60,000 per project available

Terms

Size Up to $5,000,000
LTC 100% of eligible costs
Term 5 Years
Fees Limited to 2.5%
Rates Floating rate for 5 years available
Other Costs No other fees you pay. Reimburse lender for third-party expenses including appraisal, recording taxes and fees, etc.

Talking to banks about a SPEC builder line of credit, guidance line, master revolver, master line, or other type of long-term builder capital access? Talk to VM Capital.

SPEC builder line of credit is the ultimate way for builders and developers to fund SPEC ground up construction and major rehabilitations / renovations. Use for a broad range of residential real estate, including houses, duplexes, triplex, quads, and 5+ unit multifamily residential buildings.

COST: Fees are limited to 2.5% - over the entire 5 years. Interest is charged only on the funds that you use. Interest can be floating at Prime +1.75% or +2.25%. 

FUNDING: Up to 100% LTC. We fund the lesser of 100% of eligible costs and a maximum LTV.

OTHER GREAT TERMS: Same Day Draws possible. Ask us about not having to pay interest monthly – and no interest-on-interest. No limit on how much of the line can be used for SPEC – there are no pre-sale requirements. No prepayment penalties. No required reserve accounts. Revolving so can borrow and re-borrow funds.

GREAT SERVICE: Have a dedicated representative. When you work with us, you are going into business with an experienced and honest financing company that has helped develop real estate projects across the nation. We work closely with you and will establish an easy and reliable point of contact with one of our representatives so we can answer any questions you may have before, during, and after your project. Builder Finance Inc. is proud to help bring your vision to fruition and work alongside you to create new opportunities for your community.

A SPEC builder line of credit is ideal for those looking for a long term funding solution. Work with Builder Finance for an easy and convenient way to borrow capital to finance your residential real estate projects.

Thousands of Same-Day Draws Funded

Whether you build 1 or 100 projects a year, use Builder Finance Inc.  SPEC construction loans (and loans for pre-sold homes) availa​ble in 46 states. Use for houses, townhouses, duplexes, triplex, quads, and 5+ unit multifamily residential.

6.99%-9.99%

Interest Rate 1

Regular Loans

Large Loans

Loan Size $75,000+
LTC Max 90% (100% with land subordination)
Term 10 months + 4 month extension
Recourse Limited recourse possible
Reserves/Deposit None
Origination Fee 2.5%-3.5% (pay at maturity)
Pay Rate 0.00% (no monthly payments)
Other Costs Third-party costs, $950 underwriting fee, $150 draw fee, extension fee.

Loan Size $1,000,000 - $3,000,000
LTC Max 90% (100% with land subordination)
Term 12 months + 4 month extension
Recourse Limited recourse possible
Reserves/Deposit None
Origination Fee 2.5%-3.5% (pay at maturity)
Pay Rate 0.00% (no monthly payments)
Other Costs Third-party costs, $950 underwriting fee, $150 draw fee, extension fee. If multiple units, must have a 105% "release price."

Cost

  • Bank-like rates
  • No "Dutch Interest"
  • No interest on interest
  • No prepayment penalties
  • No escrow/reserve accounts

Terms

  • 0.0% pay rate (no monthly payments)
    Limited recourse available
    Brokers protected
    FLEXIBLE: if building “for-sale” or “for-rent” residential and need something, just ask

Size

  • Up to 90% LTC PLUS upfront fees and interest
    100% LTC possible with land subordination or with Line of Credit
    TRANSPARENT: online estimator

Reilability

  • We are a “direct lender”
    We use our own balance sheet to fund
    SPECIALIZED: Our focus is squarely on SPEC and RENTAL homes

Service

  • Dedicated loan representative
    Upfront approval target is valuation +2 business days
    Same day draws possible

7 Year (5+2), 12 Year (10 + 2), and 17 Year (15 + 2) loans

Single-Family Residential (SFR) rental property loans for investors. Loans for houses, townhouses, triplex, and quads. 5+ unit Multifamily residential and individual condominium units available on a case-by-case basis. Available in 46 states. Acquisition or refinance. Build/Fix-to-rent go here.Unlike many lenders, we fund AND service loans. Assistance is just a phone call away. Need a tenant? Need to do work? Don’t get a bridge loan, we can work with you – and save you time & money.Apply below for an investment property mortgage on a single rental property or a portfolio of investment properties.

7.5%-9.0% Rate

Fixed for 5, 10, or 15 years.


 1 Point
 Rates as low as 7.5%
 Up to 75% of Value for 
     single-asset loans
 Up to 80% of Value for 
     5+ property portfolio loans
 Interest Only available
 Non-Recourse available

Great Terms
If need more time, 2 year extension option after the 5, 10, or 15 year fixed period at the greater of Prime +1% and the original fixed rate.

7 & 12 Year for investment property Acquisition or Refinance
 ​17 Year for investment property
      Acquisition (purchased within 
      past 2 years)
 ​Foreign nationals eligible
 ​Coast-to-Coast lending


Available Options
85% LTC, cash-out, non-recourse, interest-only, no tenant okay, no reserves.

88% LTC available
SINGLE CLOSE, build or fix then hold. We provide 1 year to build or rehab a property before renting. For builders and investors. Rates shown assume 740+ credit, if 700-739, 680-699, or 660-679 add 0.2%, 0.4%, or 0.9%, respectively. For a loan on an existing rental property go to rental loans.

8.2% - 8.5%
Fixed interest rate available

Great Service
We fund and hold our loans on balance sheet

Sing​le Close
Includes a full year to build/renovate

Loan Terms

Loan Size $100,000 - $3,000,000
Loan-to-Cost 88% subject to qualifications
Term 5 Years + 2 Year Extension OR
10 Years + 2 Year Extension
Build Phase 1 Year for construction or rehab
Recourse Full
Payment Year 1: Interest Only with interest reserve
Year 2 and later: 30 year amortization or interest only available on 7 year
Origination Fee 2.5%
Interest Rate 8.2% fixed for 5 Years + 2 Years floating OR
8.5% fixed for 10 Years + 2 Years floating

Rates assume 740+ credit. Rate during an extension is floating at the greater of Prime +1% and the original fixed rate.
Interest Only Year 1 on all. Full term available on 7 year, add 0.25% to rate.
Other Third-party costs, $950 underwriting fee, $150 draw fee

8.99% interest rate

Keep things EASY and LOW-COST. Builder Finance Inc. offers: a simple application, quick funding, a dedicated representative, and a 0.0% pay rate – wait until maturity to pay interest and fees.

Loan Terms

Loan Size $100,000 - $3,000,000
Max LTC 85%/100%/100% for purchase, closing costs, and work, respectively
Points 2.5
Interest Rate 8.99%
Pay Rate 0.00% (no monthly payments)
Term 8 Months + 4 month extension
Other Borrower pays all lender costs, $950 underwriting fee, $150 draw fee. Terms may differ in TN. If loan per unit >$1 million, lower ARV limit may apply.

Land Loans
Three types of lending:

  1. Loans for land inventory or land acquisition and development (A&D)
  2. Lending on the land component of construction
  3. Liquidity Access Lines

1. Land Inventory or Land A&D Loans
Loans for land development, land A&D, land inventory, land acquisition, raw land, and horizontal improvements. Builder Finance is a lot loan lender. Also, (see next item) Builder Finance Inc. can provide land and construction financing as one loan.
Terms are flexible but standard loan sizing is the lesser of (a) 65% LTC and (b) 60% LTV based upon the as-is value of the land or, if the loan is funding horizontal improvements, 55% of the as-complete value. Refer to qualifications for possible adjustments.


2. Land Component of Spec Construction
Construction Loans
75%+100%: BFI will lend up to 75% of land value + 100% of costs in accordance with an approved budget.
100%: If you obtain third-party land financing (e.g. loan from land seller), BFI may offer a 100% LTC loan.


Multi-Year Lines
BFI will fund up to 100% of land and 100% of construction costs. Land must not be an outsized cost, or no more than 1/3 of total project costs. If building out a subdivision, additional funds maybe available for horizontal development.

3. Liquidity Access Lines
SPEC Line of Credit clients and select other clients, we offer an additional benefit: liquidity access lines for land acquisition. More information We’ll advance given 1 business day of notice so clients can move fast – no waiting for an appraisal.

8.99% fixed rate up to 3 years

Need a model home loan / show house loan / display home loan for your tract development or subdivision? Ask Builder Finance Inc. for the money. We can provide a single-close loan up to 3 years in length that funds construction and then allows you to hold the property. Get started today.

Great Terms
No interest payments for 1 year initial term, thereafter pay monthly. Interest may be capitalized into loan at end of year 1.

Great Service
If part of large development, you may work with other lenders in addition to BFI on Spec and Presales

Terms at a glance

 2.5 Points
 8.99% fixed rate
 Up to 60% LTV

  No interest payments for 1 year initial term, thereafter pay monthly. Interest may be capitalized into loan at end of year 1.

  Up to 3 years of total term, depending on scope of development and needs

  If part of large development, you may work with other lenders in addition to BFI on Spec and Presales

Acquisition funding in 1-2 business days

A Liquidity Access Line (LAL) is Builder Working Capital for acquisitions. It lets you buy land or a property FAST.It will be secured by either a company with sufficient financial strength or business purpose real estate with sufficient unencumbered value. Additionally, a lien will be placed on property being acquired with LAL funds.

Great Pricing
ZERO lender fees, 9.99% interest rate.

Great Terms
Up to 4 years. Up to $500,000.

Great Service
Dedicated loan representative

More Information
Builder Finance Inc. knows home building. And we know how crucial liquidity / access to money is for builders. That is why we offer Liquidity Access Lines (LALs). Builders looking for personal lines of credit or working capital lines or other types of loans providing quick liquidity should consider Liquidity Access Lines.
Qualifications: Step 1 is to be a borrower with a Spec Revolving Line from BFI. Step 2 is to have a commercial real estate property on which BFI can safely secure a first or second lien. For example, if you have an office building worth $2.5 million with a $1 million mortgage, BFI will can put a second lien on the office building. That will serve as the main collateral for borrowing. Step 3 is to have land or another property that you are acquiring for the purpose of residential construction. BFI will lend on that piece of collateral very quickly to enable a fast acquisition.

Advances
Provide basic information on the property being acquired including a purchase contract. Will work to advance given 1 business day of notice so clients can move fast – no waiting for an appraisal.Individual advances may not exceed 75% of the cost of the property being acquired. Advance frequency is limited to no more than 3 times per month.

Time to build
When you are ready to go vertical, we may subordinate the lien on the property to the Spec Revolver – so no need to refinance or payoff until the fully-built property is sold. Ask a loan representative for details.