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

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.

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.

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

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.

CONSTRUCTION LOANS

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.

CONSTRUCTION LOAN MATRIX

Program overview, qualification levels, leverage parameters and underwriting adjustments

PROGRAM OVERVIEW
Loan Amount Up to $4,000,000 Interest Rate 7.99% – 10.99%*
Pay Rate 0.00% — no monthly payments Points 2%; Levels 9–10: 3% — paid at maturity
Recourse Limited recourse possible Term Initial 10–18 months + extension option
Other Request a term sheet for greater detail Credit Line Separate terms apply
QUALIFICATION & LOAN SIZE
Level Sold Homes
Last 10 Years		 Repayments
Last 5 Years		 Maximum LTC
100% land sub*		 Maximum LTV Budget Administration
1100+25+90%75%May directly pay all items
250+15+90%72%May directly pay all items
340+10+88%70%May directly pay all items
420+5+86%70%May directly pay all items
520+2+84%70%May directly pay all items
620+082%68%May directly pay all items
710+2+82%67%May directly pay all items
88+080%65%May directly pay 5 budget items
95+075%60%May directly pay 5 budget items
102+070%55%May directly pay 5 budget items
LOAN SIZE ADJUSTMENTS
Category Factor Negative Adjustment Positive Adjustment
FINANCIALS Credit ScoreBelow 700740 or higher
Bank account, 2-month balanceBelow $75,000$250,000 or more
Net worth excl. primary residenceBelow $500,000$3,500,000 or more
MARKET Population within 3 milesBelow 25,000 and/or decreases50,000+ and strong growth
AffordabilityLow — overbuilt / limited buyersExcellent
Presold or refinance in placeN/AYes
Issues flagged in valuationYesN/A
HISTORY Litigation with financial institution — past 10 yearsYesN/A
Foreclosure(s) — past 10 yearsYesN/A
Bankruptcy issue — past 10 yearsYesN/A
Delinquency with builder supplierYesN/A
Outstanding real estate liensYesN/A
Real estate loan delinquencyYesN/A
Performance issue on prior loanYesN/A
* Interest Rate: 7.99% first month, increasing 0.5% monthly up to 9.99% maximum for $2+ million loans; otherwise up to 10.99% maximum.
Maximum LTC: 100% may apply to land subdivision for Levels 1–5 and 7.
Maximum LTV: Loans above applicable per-unit thresholds may have lower LTV. If loan per unit exceeds $2 million, maximum LTV is 70%.
Disclaimer: Information is not comprehensive, may not apply in all states, and is subject to change. This does not constitute a lending agreement. All loans are subject to credit approval. Source document last updated January 2026.
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.

Frequently Asked Questions

Common Questions Answered for your convenience.

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.