BuildSpec Loan Program

SD Housing / Develop Housing / Available Development Programs / BuildSpec

The BuildSpec Loan Program is designed to loan construction money at low interest rates to incentivize builder members of the South Dakota Home Builders Association to build speculative homes.

Eligibility Requirements

Builder members of the South Dakota Home Builders Association qualify with a limit of one loan at a time. If a builder has had a BuildSpec Loan previously, and there is a waiting list, the builder must go to the end of the waiting list.

Only speculative homes qualify.

The maximum value of the home is $385,000.

The maximum loan is 80% of the value of the home.

Are you interested in funding, but not a member of SDHBA yet? Join SDHBA or call the SDHBA office at (605) 224-2761.

Terms

There is an origination fee of 1% of the amount of the loan.
The maximum term of a loan is 12 months, however, a builder may be considered for an extension of 6 months if requested.
The interest rate the first six months of the loan is 0%. The interest rate the second six months period is 1/2 of the market rate used by the South Dakota Housing Development Authority.
If a builder requests a third six month extension and is approved, the builder will pay an additional origination fee of 1/2% of the loan amount, and pay the full market interest rate used by South Dakota Housing Development Authority.