Revolving Builder Line of Credit: Fuel Your Growth Without Pre-Sales

The Power of a Revolving Line of Credit

The Power of a Revolving Line of Credit

Scale your homebuilding business with a financing partner that understands the "spec" market. At BuilderLineOfCredit.com, we provide professional contractors and residential developers with a master revolving facility designed to keep your crews working and your inventory moving.

Loan-to-Value (LTV) Matrix

Loan-to-Value (LTV) Matrix

We offer competitive leverage based on the unit value of your homes. Our LTV limits are structured to support everything from entry-level builds to luxury estates.

Program Dimension Builders CAPLine Operational Blueprint
Core Mechanics & Rules
  • Project-Based Draw: Funds are distributed in structured phases as construction milestones are met and inspected.
  • Maturity Window: Capped at a maximum of 5 years (60 months), with a strict requirement to pay off the line within 36 months of selling or completing the property.
  • SBA Policy Exception: Explicitly authorized to finance residential or commercial properties built for immediate resale.
  • On-Site Supervision: Requires at least one full-time supervisory employee present on-site throughout active construction.
Eligible Uses of Proceeds
  • Direct labor and raw material costs (framing, plumbing, electrical).
  • Municipal permits, hookup fees, zoning inspections, and architectural planning.
  • Short-term tool or heavy machinery rentals required for the job site.
  • Land Cap: Loan funds can be used for land acquisition, but the raw land cost cannot exceed 20% of the total project.
Program Integrations
  • Can be combined with the SBA 7(a) Working Capital Pilot (WCP) Program.
  • Offers transactional financing parameters up to $5 million with reduced, flexible fee models for homebuilders.
Requirement Layer Borrower Eligibility Criteria What You Need to Prepare (Borrower Tip)
1. Construction & Track Record
  • Industry Experience: Registered homebuilder or general contractor with a documented history of successfully completing projects of similar size and scope.
  • On-Site Management: Must perform the work directly or keep at least one full-time supervisory employee on-site during active construction.
  • Supplier Standing: Must prove a track record of paying subcontractors and material suppliers promptly.
 Gather a project portfolio, your builder licenses, and 3 reference letters from architects, engineers, or past clients verifying your performance.
2. SBA 7(a) Core Mandates
  • Business Structure: Must operate as a registered, for-profit business within the United States.
  • Size Standards: Must qualify as a small business based on SBA industry thresholds for revenue or head count.
  • Credit Availability: Must demonstrate that you cannot secure a conventional bank line on reasonable terms without the SBA guaranty.
  • Clean Record: No active defaults or delinquencies on any federal taxes, student loans, or government-backed obligations.
 Prepare standard corporate entity paperwork and be ready to explain why traditional alternative commercial bank options were exhausted.
3. Financial & Underwriting
  • Time in Business: Minimum of 2 years of active corporate operations.
  • Credit Minimums: Personal credit score generally expected to be 620 to 640+.
  • Guarantees: Unconditional personal guarantees required from anyone holding a 20% or greater ownership stake.
  • Collateral: First-position lien on the specific real estate project site, building structures, and underlying land.
 Provide 2–3 years of business and personal tax returns, active financial balances, and property deeds or purchase contracts for the site.

LINE OF CREDIT (SPECS)

Credit Facility Size

Up to $5 Million.

High Leverage

Up to 100% of eligible project costs.

Project Types

Residential, ground-up construction for-sale projects.

Flexible Terms

5-year term with interest-only payments available.

No Pre-Sale Requirement

Built specifically for "spec" inventory in approved markets.

RATE

Rates from prime + 1% to prime +3% for 5 years.

SBA under their 7(a) Builders CAPLine program

Minimum Loan Amount

$500,000.

Why Builders Choose Us

100% Cost Financing

We fund the lesser of 100% of eligible project costs or the applicable LTV limit. Your "eligible costs" include onsite labor and materials directly related to construction, ensuring your capital isn't tied up in the dirt.

Streamlined Draw Process

Keep your subcontractors happy with a fast draw process. We allow up to two draws per month, ensuring a steady cash flow for your job site.

Construction financing term sheet with key terms and eligibility details.

STEP 1: INITIAL CONSULTATION

Once you submit your consultation request, our team will contact you to review the program details and ensure it’s the right fit for your goals.

Application progress0% complete

SPEC Application

For spec and pre-sale construction projects

Borrower Information

Supporting Documents (Optional)

Drag & drop documents here, or click to browse

Plans, budget, purchase contract, appraisal or BPO, builder résumé, entity documents.

Up to 10 files, 25 MB each — PDF, Word, Excel, CSV, text and pictures.

    STEP 2: UNDERWRITING REVIEW

    After verifying that this program is the right fit, we’ll collect the documents below to submit your file for underwriting.

    Application Checklist[cite: 1]

    5-Year Builder Revolving Line of Credit[cite: 1]

    Underwriting & Due Diligence Submission[cite: 1]

    Submission Instructions: Please provide all applicable documentation listed below to initiate formal loan underwriting[cite: 1]. Incomplete packages will defer committee review[cite: 1]. Documents must be submitted in clear, readable PDF formats to your assigned Loan Officer[cite: 1].
    Submission Readiness Tracker 0 of 17 Items Complete (0%)

    1. Borrower & Management Documentation[cite: 1]

    Items 01–07[cite: 1]
    01
    Borrower Information Form (Form 1919)[cite: 1]
    Complete all sections and execute for the applicant borrowing entity[cite: 1].
    02
    Agreement of Compliance (Form 601)[cite: 1]
    Fully executed compliance certificate[cite: 1].
    03
    Organizational Documents[cite: 1]
    Entity and partnership documentation (Articles of Organization, Operating Agreement, Bylaws, Certificates of Good Standing)[cite: 1]. Note: Please disclose if an ownership transfer occurred within the preceding 6 months[cite: 1].
    04
    Management Resume & Track Record[cite: 1]
    Detailed residential construction history including list of homes built and sold, 1 banking reference, 1 material supply reference, and 2 trade/subcontractor references[cite: 1]. Detail the management team's active role in daily onsite supervision[cite: 1].
    05
    Work in Progress (WIP) Schedule[cite: 1]
    Comprehensive report of all active projects under construction, stage of completion, and projected sales pricing[cite: 1].
    06
    Government-Issued Photo ID[cite: 1]
    Clear copy of Driver's License or Passport for each principal owning 20% or greater[cite: 1].
    07
    Credit Authorization & Certification (Form S1)[cite: 1]
    Signed authorization form[cite: 1]. If any questionnaire item is marked "Yes" (Item 7a: litigation, mechanics' liens, disputes, foreclosures), supply a formal written explanatory statement and supporting legal documentation[cite: 1].

    2. Financial Statements & Tax Filings[cite: 1]

    Items 08–13[cite: 1]
    08
    Personal Financial Statement (PFS / Form 413)[cite: 1]
    Required for any individual owning 20% or more of the borrowing entity, as well as each personal guarantor[cite: 1].
    09
    Past 3 Years Tax Returns[cite: 1]
    Provide most recent 3 years filed (or extension plus complete filing) for the borrowing entity and all corporate affiliates[cite: 1]. (Provide all available years if formed under 3 years ago)[cite: 1].
    10
    Company Financials (Past 3 Years Year-End + Interim YTD)[cite: 1]
    Full Balance Sheets and Income/P&L Statements for the borrowing entity and all affiliate companies[cite: 1].
    11
    Business Debt Schedule[cite: 1]
    Comprehensive schedule of existing obligations, balances, monthly debt service, and collateral for applicant and affiliates[cite: 1].
    12
    Past 3 Years W-2 Forms[cite: 1]
    Required for each individual owner holding 20% or more equity in the borrowing entity[cite: 1].
    13
    Income Statement Projections[cite: 1]
    Pro-forma income and operational cash-flow projections for the upcoming 2 fiscal years[cite: 1].

    3. Regulatory, Disclosures & Market Support[cite: 1]

    Items 14–17[cite: 1]
    14
    IRS Form 4506-C[cite: 1]
    Signed tax transcript request covering the last 3 years of business federal tax filings[cite: 1].
    15
    Ownership Disclosure Form[cite: 1]
    Executed declaration certifying compliance with federal regulations, citizenship requirements, and equity covenants[cite: 1].
    16
    Letter from Local Residential Mortgage Lender[cite: 1] Consult Loan Officer[cite: 1]
    Written confirmation attesting that viable end-buyer permanent take-out mortgage financing is available for target home purchasers[cite: 1].
    17
    Letter from Local Real Estate Broker[cite: 1] Consult Loan Officer[cite: 1]
    Market validation letter confirming strong absorption/demand exists for the proposed home product and that spec plans conform with neighborhood values[cite: 1].
    Builder Line Underwriting Checklist Document Reference CL-5YR[cite: 1] Lender Underwriting Requirements[cite: 1]

    Required Documents

    What we need to get started

    Please download, complete and return the documents below. Reach out if you have any questions about a form.

    Excel
    Work In Progress
    Download
    Excel
    Debt Schedule
    Download
    Excel
    Monthly Income Projections
    Download
    Word
    Real Estate Broker Letter
    Download
    PDF
    Checklist
    Download
    PDF
    Ownership
    Download

    Completed documents can be uploaded through the application form or sent to your loan specialist.

    Frequently Asked Questions

    What are the eligibility requirements for a borrower?

    We look for construction contractors or homebuilders who show profitable history with lender project loans and demonstrate strong character, credit, and management experience.

    Can I use this line for multi-unit projects?

    Yes. For 2+ unit projects, we offer LTV limits based on the value per unit, typically ranging from $200,000 to $500,000 per unit.

    Are there any pre-payment penalties?

    No. There are no pre-payment penalties, giving you the freedom to sell and exit projects as soon as they are completed.

    Is there a charge for unused portions of the line?

    No. There is no "unused charge," meaning you only pay interest on the funds you have actually drawn for your active projects.

    What is the "Recourse" requirement?

    This facility requires full recourse to all owners with a 20% or greater stake in the borrowing entity.

    Are there restrictions on where I can build?

    Projects must be located in approved states and in markets with a population of at least 25,000 people within a 3-mile radius to ensure healthy marketing times.

    SPEC Builder Line of Credit – Broker Referral Program

    We do Co-Broker, and work with brokers on our SPEC Builder Line of Credit program. Because the loan is submitted to be partially guaranteed by the SBA under its 7(a) Builders CAPLine Program, brokers are not permitted to charge points directly to the client. However, for clients you refer to us, if we successfully close a line of credit of $500,000 or more, you will get paid 0.5-point referral fee based on the total approved line amount. The referral fee is paid as follows: 25% of the referral fee upon the client's first disbursement from the line of credit. 75% of the referral fee on the first date the line of credit becomes more than 60% drawn. IMPORTANT NOTE: Because this is an SBA/government-backed loan program, no additional fees, points, or broker fees may be charged directly to the borrower, including fees charged separately or outside of closing.