Loans on Spec Home Construction

[Zach Kirchoff]

Hello,

Looking to speak with an expert in the spec home lending space. Smaller developments (2-10 homes at a time) and lower price point (under $500k). Please let me know who your favorite lender in this space is!

[Jay Hinrichs]

Quote from @Zach Kirchoff:

Quote from @Paul Sofia:

Quote from @Zach Kirchoff:

Hello,

Looking to speak with an expert in the spec home lending space. Smaller developments (2-10 homes at a time) and lower price point (under $500k). Please let me know who your favorite lender in this space is!

 Are your prospective builds in Minneapolis metro?

 Yep

community banks hands down.. for best rates etc.  national lenders and the brokers who put you together with them will be more expensive and if the deals dont go as planned these lenders can be nightmares.. community banks will generally work with you if there is a hiccup. I know this from vast experience in the space.. And to get spec loans from most banks they are going to want a deposit relationship.. I just bought a lot in SC and will do a 900k spec and the bank wants me to deposit 250k .  So there is that.. Good luck with it..