With a spec homes, builders don’t have clients, as custom home builders do. They are building a home with the intent to either sell it before or after it is finished. Builders require financing to purchase the materials and pay their crews—and many need the loan for the land, as well

There are many steps to Arizona spec home financing. First, have a marketing plan for your project. This plan should include the price you plan on selling your property, who your target audience will be—for example ‘over 50.’ The plan needs to include how your target audience will know the house is on the market. Will you be attending local real estate events? Will you hire a realtor? The bottom line is lenders want to feel confident you will be able to sell the home once it is built.

Another aspect of obtaining Arizona spec home financing is gathering all the financial documents necessary. This will include you bank account statements, all sources of income and the last 3 years of your federal and sate tax returns. If you are planning on working with a traditional bank, plan on much more documentation and a squeaky clean credit check with no bankruptcies. Generally, banks will want to see a successful track record.


Will a bank lend to a borrower looking for Arizona spec home financing? The answer is, ‘sometimes.’ However, as stated above, a builder will face many challenges—and if this is one of their first spec homes, the answer is probably, ‘no.’ Even with perfect credit banks are much too weary to lend on these types of loans for newbies.

Hard money loans are an investor’s best friend. You can receive a same day approval. Unlike banks that can take weeks to even give you the approval needed to move forward with their very lengthy process. If you already own the land you will be building on, that work as your collateral for a Arizona Hard Money Lender—along with the property. As banks frown upon first-time builders, a Arizona Hard Money Lender will be objective and look at it strictly as “does this make sense?” With a hard money loan you can receive higher loan amounts of your spec home financing than a bank will offer. For first time builders or builders with marks on their credit report, spec loan financing will allow them to get the job done.

Construction spending is rising to its highest level in years.

There is a higher demand for new homes right now. This leads builders to search for quicker and more reliable funding than traditional bank lending. Arizona Hard Money Lenders can generally lend up to 90% and depending on the project they may fund 100%of the construction costs—as long as your project makes sense.

Dennis Dahlber Broker Ri CEO Level 4 Funding LLC
Dennis Dahlberg


Level 4 Funding LLC 
Hard Money Lender

Hard Money Loans

Hard Money Loan

Arizona Tel:  (623) 582-4444

Texas Tel:      (512) 516-1177


Dennis Dahlberg Broker/RI/CEO

NMLS 1057378 | AZMB 0923961 | MLO 1057378

22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027

111 Congress Ave | Austin | Texas | 78701  

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

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