Spec Home Construction Loans and Financing For Builders


Spec Home Financing and Spec Home Loans that close in as little as 8-10 days

Spec Home Construction Financing

American Association of private lenders member

What is a spec home construction loan?

Spec Home Construction Loans are a type of loan typically used by builders for constructing multiple properties at once. They are called “spec” loans because the builder does not know specifically who will buy the property after it’s built. The loan is based on the anticipated market value of the property once it’s completed, so there is a measure of risk incurred by the lender in providing this type of financing.

  • Purpose: Builders use spec home construction loans to finance the construction of homes without having a specific buyer lined up.
  • Concept: These loans are called “spec” loans because the builder doesn’t know in advance who will purchase the property once it’s completed.

How are Hard Money New Construction Loans and Spec Home Construction Loans different?

Hard money new construction loans are similar to spec construction loans in that they are both short-term and involve a high degree of risk for the lender. Hard money new construction loans, however, provide even more flexibility than spec loans and often come with higher interest rates and points as well. These types of loans can be used when traditional lenders won’t finance a project due to its complexity or other factors like lower credit score on part of the borrower.

In either case, both spec construction loans and hard money new construction loans require extensive paperwork, including detailed plans and cost estimates for the proposed project. It is also important to find an experienced lender that understands all the nuances involved in financing such a high-risk investment. With careful research and planning, these types of loans can be an attractive choice for builders looking to get their projects off the ground quickly without breaking the bank.

How can using the construction lot as equity serve as a down payment on the loan?

When considering using the construction lot as equity for your loan application, it’s important to understand how this strategy can positively impact your chances of loan approval. By leveraging the construction lot as equity, you open up the possibility of securing a higher loan amount based on the value of the lot itself. For example, if the lot is permitted, borrowers may be eligible for a loan amount of up to 75% of the lot cost. Furthermore, the total loan-to-cost ratio can extend up to 90%, indicating that a larger portion of the total project cost can be covered by the loan. This increased equity in the form of the lot not only makes the project more attractive to lenders but also enhances your overall creditworthiness, thereby improving the likelihood of securing loan approval. Therefore, utilizing the construction lot as equity can be a strategic move to bolster your loan application and enhance your chances of obtaining the necessary financing for your project.

Ken has been a hard money lender for over 25 years. He has funded over 25k deals for investors in that time. Ken specializes in fix and flips, ground up spec construction and 30 year DSCR loans. He is also a real estate investor in NJ and NY. Ken built several homes on Long Beach Island (Ship Bottom) after hurricane Sandy,



Spec Home Construction Loan Financing fast!

Hardmoneyman.com LLC is the market leader for spec home construction loans. We have made thousands of hard money spec home construction loans over the last 2+ decades.
While many lenders claim to make ground up construction loans, we have built houses ourselves and understand exactly what our borrowers are looking for in a lender on their deals.
With our commonsense underwriting and quick closings, you will never look for another lender again after closing your 1st deal with us!!
New construction spec home loans require a lender that understands the whole process from acquiring the lot (or lots and putting the pieces of the land together), to entitlements, permits, approved plans and then most important, closing your loan and getting your draws done quickly.

Shaun Dozier
Shaun Dozier
My company has closed over 5 deals with Ken Vesely . He's very knowledgeable and will get it done . Good communication and responsive!
Demetri Williams
Demetri Williams
This is the best lender I've used for all my deals. Very fast and efficient. Never any glitch always a smooth sail to closing. Don't waste your time using someone else.
Dario Olivere
Dario Olivere
I have closed multiple deals with Ken. He’s to the point, very straight forward and won’t lead you on. He’s helped guide me along the way. I will always recommend him to my friends and I will always use him for my deals.
Tom Tinsey
Tom Tinsey
This was my first time using any type of hard money financing so I had tons of questions along the way. Ken answered every one and even helped me out a lot with great recommendations as far as building my real eatate portfolio. Look forward to working with him on future deals and would recommend. No nonsense. No bs. All buisness!!
Brandi Pernell
Brandi Pernell
The experience my husband’s and my company (Kingdom Realty, LLC) had with HardMoneyMan.com, LLC/Ken Vesely was five-star, from our very first interaction to closing. Ken is efficient, responsive, transparent and extremely knowledgeable. He kept his word on all things discussed, with no surprises along the way, which is extremely important with matters such as these. This was Kingdom Realty LLC's first experience with a hard money loan. Ken took the time to answer all of our questions and taught us a lot throughout our loan approval process. We closed our deal in less than 30 days; and would have closed sooner had it not been for the holidays. We are very much looking forward to working with HardMoneyMan.com LLC for our next deal, and strongly recommend this company to others looking to invest in real estate, close a deal quickly, and learn some tips along the way.
Christian Rodriguez
Christian Rodriguez
I have worked with Ken multiple times and every transaction was a breeze if I have to recommend a straight forward Hard Money Lender, Ken is the man to go with
Christina McCann
Christina McCann
Great company great experience
Joe Matthews
Joe Matthews
Dealing with Ken and his team is flawless. The process is very streamline from start to finish with excite communication throughout the process

Submitting your application package for a Ground Up construction loan is quick and easy


Minimum Credit score

Interest Rate


Advance on Lot Purchase

Advance on Construction 

ARV/Loan to Cost

Property Types

Pre-Pay Penalty


Blanket Loans

Loan Amounts

Loan Term 

Closing Time 

Approval time 

3+ New builds last 36 months 

680 mid 


2% or $2500 whichever is greater

Up to 70% 


70%/80% max

1-4 unit residential, condos, townhouses




100k - 5MM

12 Months

7-14 Days

30 Min from submission

Hard Money New Construction Loans 

These are loans for builders with lots that you’re ready to go vertical on (shovel ready), or houses that need to be torn down and rebuilt, spec homes, model homes for subdivisions.

1. What are the potential returns of projects funded by SPEC loans?

Projects funded by SPEC loans have the potential for high returns, as these loans facilitate the financing of construction projects that can yield profitable outcomes for investors, developers, homebuilders, and contractors, emphasizing the financial benefits of utilizing SPEC loans.

2. How does a SPEC loan help in interim construction financing?

SPEC loans assist in interim construction financing by providing the upfront funding needed for investors, developers, homebuilders, and contractors to initiate construction projects, especially when traditional construction financing options are not available.

3. Who can benefit from SPEC loans?

Developers, investors, homebuilders, and contractors can benefit from SPEC loans, as these short-term loans help them find the necessary funding to purchase property and start construction projects intended for sale upon completion.

4. What is the purpose of a SPEC loan?

A SPEC loan provides upfront funding for the lot purchase and construction funding through draws, with the intention of selling the completed project, highlighting the speculative nature of the loan for construction projects.


Overall Loan Criteria for New Construction

  • 680+ Mid Credit Score
  • Minimum 3 or more new builds and sales in the last 36 months or licensed builder with 3 built for others last 36 months
  • Rates Starting at 11.5%
  • 12-24 Month Term
  • Loan Amounts from $100k – $5M
  • This is for 1-4 unit residential and townhouses only

Lot Purchase + Construction

  • 680+ Mid Credit
  • 60% of lot cost if unpermitted
  • 75% of lot cost if permitted 
  • 100% Construction cost
  • Up to 90% Total Loan to Cost
  • 70% Completed Value max loan
  • Minimum 3 new build and sales in the last 36 months required or licensed builder with 3 or more built for others
  • Low LTV loans have the option to build payments in from equirt
  • 1-4 unit residential and townhouses 

** The above percentages are based on credit and experience

Construction Funds Only (Lot Already Owned)

  • 680+ Mid Credit
  • Up to 90% Loan to Cost  (Price you paid + construction cost x 90% is the max we can lend)
  • 70% Completed Value max loan
  • Minimum 3 new builds and sale in the last 36 months required

** The above percentages are based on credit and experience

Experienced Developer Program (3+ similar projects)

  • Perfect for small development deals ($5M max loan) 
  • up to 10 1-4 unit residential homes

Get Your Pre-Approval

Step 1 of 3

Please answer a few questions to see if your loan scenario is eligible for one of our hard money loan programs, or our landlord 30 year program.
Do you live at the property?(Required)