Builder Finance Inc.
Transparent and Affordable Construction Loans

Builders and investors are on the lookout for attractive loan programs for their construction projects. Along with reasonable interest rates, they seek lending institutions that are transparent and accountable.

Builder Finance Inc. adheres to these principles, offering transparency across all its loan offerings, including construction, rental property, build-rent, fix-flip, land development, model/show house loans, and lines of credit. The company promotes transparency by making terms and conditions available online.

“We offer an array of features to make the lives of our borrowers easy. Features can include same day funding of draws, no monthly interest payments for up to a year or longer, and easy online (or paper) applications. We also assign a dedicated loan officer for each borrower,” says Michael Maxwell, Chief Lending Officer at Builder Finance Inc.

One of Builder Finance Inc.’s core construction loan offerings, project loans for SPEC construction, is a financing program designed to provide easy access to funding to get construction underway for ground-up residential building projects. Under this program, borrowers can delay payment of the origination fee and interest until the home is constructed and sold. Even though interest is not paid monthly, there is no interest-on-interest. In addition, borrowers are not required to fund reserve or escrow accounts.

This saves money and provides additional liquidity for borrowers, giving them access to the money needed to acquire more properties or cover unforeseen expenses during the construction phase.

Builder Finance Inc.’s flexible draw process allows borrowers to create a draw schedule that meets their capital needs. With same-day draw funding possible, borrowers can pay their suppliers and trades promptly.

Builder Finance Inc.’s SPEC builder line of credit is a unique program that can offer 100 percent loan-to-cost financing, including land acquisition costs. The program has an interest rate as low as Prime +1.75 percent. A line can be lockedin for a five year term, making it the ideal program for those looking for a long-term funding solution. It can offer clients a significant advantage over more expensive private lenders and bank lenders with lower advance rates and tougher terms such as SPEC limits.

Under its Build-to-Rent program, Builder Finance Inc. offers a single-close program with a fixed interest rate. The company gives the borrower one year to build or rehab a property before renting. The fixed interest rate can be set for up to 10 years, offering a great advantage to borrowers in an economy where interest rates are constantly rising.

Having been in business for eight years, Builder Finance Inc. has helped numerous clients grow their businesses and become more profitable by going the extra mile. In one instance, the company’s services were solicited by a builder for their spec construction project in Tampa, Florida. The bank that had previously agreed to finance the project turned down the client shortly before the loan closing date.

The client, who had spent over a million dollars on land acquisition and other soft costs, had all the trades lined up to start the infrastructure work but lacked the capital to move forward with the project. Builder Finance Inc. stepped in and closed the loan for the client within a few weeks and now finances the construction of the client’s tenhome subdivision.

In an industry where rising interest rates are a constant concern, Builder Finance Inc. offers a great deal of stability by closing new loans and creating programs to help address the uncertainties related to the cost of capital. Being a wholly owned subsidiary of a bank, the company has access to stable, long-term capital, making it a reliable partner for borrowers.

Amid the shortage of affordable housing options and raging inflation, Builder Finance Inc. places its faith in the builder community to weather the storm and continues to offer lucrative loan programs for builders and investors.