Flexible loans for builders who need capital to start — without waiting on presales.
A spec home construction loan is designed for builders who construct homes “on speculation” — before a buyer is lined up. Instead of relying on presales or takeout commitments, spec home financing gives builders the capital they need to break ground, complete construction, and sell once the homes are finished.
Banks often hesitate to fund spec homes because they see them as risky. Nelson Funding takes a different approach. We work with private lenders, institutional partners, and alternative capital sources who understand the spec home market and can provide the speed and flexibility builders need to stay competitive.
Not every project can wait for traditional financing. Common scenarios where commercial bridge loans make sense include:
Builder in Phoenix, AZ
Development of six spec homes in a growing suburban community
The bank required 30% cash equity and at least two presales before funding. The builder needed to start immediately to stay ahead of competing builders.
Nelson Funding arranged a $4.5M spec home construction loan with 80% LTC and a 24-month term. Funds were disbursed through a draw schedule aligned with construction milestones. The builder broke ground within three weeks, completed the homes, and sold all units within 18 months.
Builders across the U.S. trust Nelson Funding for spec home construction financing because:
“We help builders break ground faster. Where banks stall, we get deals funded.”
No. Our lending partners finance spec homes without presales, focusing on builder experience and project viability.
Typically 15–25%. Some lenders allow higher leverage depending on the project.
Yes. Many spec home loans are structured for subdivisions or multiple-unit builds.
Funds are released in stages as construction progresses — for example, land prep, framing, roofing, and completion.
Most builders sell completed homes and use proceeds to repay the loan. Others may refinance into long-term financing if they choose to hold inventory.
Don’t let bank restrictions or presale requirements hold you back. Nelson Funding connects builders with spec home construction financing that provides the capital, speed, and flexibility to stay ahead of the market.
