Project financing for spec homes, build-to-rent, and teardown rebuilds.
Through PRMG programs, Ken Clark Jr. helps builders and experienced investors finance ground-up construction of single-family homes, townhomes, condos, and small multifamily projects on non-owner-occupied properties, in every state where PRMG is licensed (all except New York), including California and New Jersey.
Short answer: it is a short-term, business-purpose loan that funds land (if needed) and construction of a new property that will be sold or rented, repaid at sale or by refinancing.
This is different from a one-time close loan, which is for someone building a home they will live in. If you are building for your buyers, see the one-time close guide and builder registration.
Short answer: commonly up to about 85 percent of total project cost (land plus hard and soft costs), capped at a percentage of the completed value, with the rest from your equity.
| Measure | Common range (varies) |
|---|---|
| Loan-to-cost | Up to about 80% to 85%, by experience |
| Loan-to-completed value | Commonly around 65% to 75% |
| Loan amounts | From about $100,000 to $500,000 minimums up to several million, by program |
Land you already own may count toward your equity in the project. How it is valued depends on how long you have owned it and program rules.
Short answer: most programs require prior completed ground-up projects, commonly at least two. More experience can mean higher leverage.
Some programs may consider less experience when paired with an experienced general contractor or lower leverage.
Short answer: construction funds are released in draws after inspections, and many programs charge interest only on the funds drawn so far.
Some programs fund approved draws within about 48 hours. The final draw is commonly tied to the certificate of occupancy. See the draw process.
Short answer: sell the finished property, or refinance into a long-term rental loan.
Build-to-rent investors often refinance into a DSCR loan. Renovation projects on existing homes use fix and flip loans instead.
If you build homes for owner-occupant buyers, PRMG one-time close programs may let your buyers finance the lot and the build with one closing. Keep your builder registration current so your buyers' loans are not waiting on your paperwork, and see how draws keep your cash flow predictable.
Answered by Ken Clark Jr., Certified Mortgage Advisor. Program availability and requirements vary and are subject to change.
A short-term, business-purpose loan that finances building a new property to sell or rent, repaid when it is sold or refinanced.
Depending on experience and program, commonly up to about 85 percent of total project cost, capped at a percentage of the completed value.
Most programs require prior completed ground-up projects, commonly at least two.
Many programs charge interest only on funds drawn so far.
Commonly 12 to 24 months.
No. One-time close is for owner-occupant buyers. Spec homes use business-purpose builder construction loans.
Requirements vary. Some programs require permits before closing or before the first draw.
Often yes. Owned land may count toward your equity in the project, valued under program rules.
Most programs require a contingency in the budget, commonly around 10 percent.
Yes. PRMG programs are available in every state where PRMG is licensed, which is all states except New York, including California and New Jersey, subject to program guidelines.
Guidelines change. Verify current program requirements with Ken Clark Jr. before relying on them for a transaction.
Disclaimer: This content is for educational purposes only and is not a commitment to lend, a guarantee of approval, or a rate quote. Loan programs, down payment requirements, terms, and eligibility depend on borrower, property, project, builder, and program qualifications, are subject to underwriting, and vary by state. Not all applicants or projects will qualify. Builder registration is a documentation review for program eligibility and is not an endorsement of any builder. Business-purpose loans are for non-owner-occupied investment properties only and are not consumer mortgage loans. Equal Housing Opportunity. Paramount Residential Mortgage Group, Inc. (PRMG), NMLS #75243. Ken Clark Jr., NMLS #225375. PRMG is licensed in 49 states, excluding New York.
Certified Mortgage Advisor and Branch Manager at PRMG Mortgage (NMLS #75243). 28 years in mortgage lending. Specializes in FHA, VA, conventional, DPA, jumbo, Non-QM, renovation, and construction financing for buyers and investors in Sacramento, New Jersey, and nationwide. PRMG is licensed in 49 states, excluding New York. Three-time Gold Award winner for Highly Reviewed Mortgage Team in Sacramento (2023, 2024, 2025). NMLS #225375.
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