Home builder spec home loans

An applicant can get home builder spec home loans for as much as 1.5 million dollars. Land equity and prepaid costs can be used as a down payment for some deals. But the builder must have an average or better credit rating score and provide a 10 percent post-closing liquidity of the total amount. He must also have a 15 percent minimum gross profit margin to qualify. Some lenders also require that the applicant have a certain number of years' experience, or a co-signer with home-building experience, in order to qualify.