Short answer:
Spec home loans allow investors and builders to finance new construction without having a buyer in place upfront. Private lenders like Silverton Capital provide these loans based on the deal’s numbers—not signed contracts—so you can break ground without waiting for a pre-sale.
Let’s explore how spec home financing works and when it makes sense.
“Spec” stands for speculative.
A spec home is a new build constructed without a committed buyer. You, the builder or investor, are betting that the finished home will sell quickly in the current market once completed.
It’s a common strategy in growth markets like Dallas, Tarrant, and Collin counties, where housing demand remains strong and new construction can yield excellent returns.
But here’s the catch: banks don’t love risk. And to them, building without a buyer = risk.
Traditional lenders typically require one of two things before they’ll fund a new construction project:
For many small-to-mid-size builders and solo investors, those requirements are out of reach. Maybe:
This is where hard money spec home loans come into play.
Private lenders like Silverton Capital look at the numbers and the neighborhood, not just your resume or buyer list.
Here’s what we focus on instead:
If you're planning a spec build in a solid North Texas neighborhood—say, McKinney, Frisco, Fort Worth, or Rockwall—and the numbers make sense, we can structure a loan that covers:
And no, you don’t need a pre-sale contract to qualify.
Let’s say you find a quarter-acre lot in Frisco listed at $150,000. You estimate construction will cost $300,000, and comps in the area show you can sell the finished home for $525,000.
You bring $75,000 in cash to cover part of the land and some of the early construction.
Silverton Capital reviews the lot, your building plans, contractor bids, and resale projections. Based on your plan and market demand, we approve a spec home loan that funds:
You start construction in 2 weeks, list the home in 6 months, and close on the sale at $540,000. The loan is paid off, and you walk away with your profit.
No buyer needed upfront. No wasted months waiting for a bank to approve a contract they don’t like.
You should explore spec home financing if:
This loan is ideal for:
We don’t make you jump through hoops—but we do need a few things to approve your deal:
If the deal looks right, we’ll move quickly. We’re based in Texas—and we know how fast the market moves here.
Apply now to see if your spec home project qualifies.
You don’t need a buyer in-hand to build a home. With the right lender and the right plan, you can break ground on a new construction project and sell it when it’s done—on your terms.
Spec home loans give builders and investors the flexibility to act confidently in hot markets, without banking delays or pre-sale pressure.
Planning a spec build in Dallas, Tarrant, or Collin County?
Apply with Silverton Capital for fast, flexible financing built around your project—not someone else’s checklist.
This article is for informational purposes only and is not intended to serve as legal, financial, or investment advice. Please consult with a licensed professional before making financial decisions.