North Carolina permitted 65,303 single-family units in 2025, third among states after Texas and Florida (US Census Bureau, on our 2026 financing data page). Around Charlotte and Raleigh, a typical investor file is infill on a close-in lot or a small group of lots in a surrounding county, built to sell.
The loan
| Term | What it means |
|---|---|
| Leverage | Up to 85% of total cost, land included when bought with the loan |
| Value check | The loan is also tested against the finished value; where value is close to cost, value sets the amount |
| Term | 12 to 24 months, written to the realistic permit and build schedule |
| Interest | Interest-only on the drawn balance |
| Funding | Land at closing, then draws after each inspected stage |
| Loan size and fee | $1M to $5M; 1% to 2% at closing, no upfront fees |
What changes between Charlotte, Raleigh and the counties
Permit and utility timelines differ between cities and counties, and that difference is the main schedule risk on a North Carolina spec home. Ask the jurisdiction early, and write the realistic timeline into the budget: interest carry and the loan term follow it.
New supply is the other variable. RealPage counted 2,703 build-to-rent units under construction in Charlotte in August 2026, and about 2,300 in Raleigh-Durham in May. A spec home for sale competes with new rentals and with other builders' inventory, so the as-completed value has to rest on recent sales of comparable new homes, not on list prices.
First-time builders
A first spec home is fundable with an experienced licensed general contractor, a detailed budget and a contingency. Completed builds earn more leverage. Experience outside North Carolina counts if it is documented.
Draws in practice
The line-item budget becomes the draw schedule. When a stage is complete (foundation, framing, dry-in, and so on), you request a draw, an inspector confirms the work on site, and the funds are released against lien waivers from the contractor and suppliers. Interest runs only on what has been drawn.
Two habits keep draws fast: submit each request with photos and the invoices for that stage, and keep the contingency line for genuine surprises rather than scope additions. A budget that is short on a trade early in the build is the most common reason a draw is held.
The file for a term sheet
Choose the closing attorney or agent early. A term sheet comes back in 24 to 48 hours. How draws are requested and released is in the construction draw schedule, and the program is on North Carolina spec home and ground-up construction loans.
- The lot: deed or contract, survey, zoning, and utility availability
- Plans, specifications and permit status
- A line-item budget with contingency, which becomes the draw schedule
- The builder's contract, licence, insurance and record
- Comparable new-construction sales nearby
- Your equity, liquidity and the LLC that will borrow
Selling, or keeping the home
Most spec loans are repaid from the sale. If the home is rented instead, a DSCR loan up to 80% LTV, with a 30-year fixed rate available from 6% to 6.5%, can repay the construction loan once it is leased. For several homes built to rent, see build-to-rent in Texas, North Carolina and Georgia. Non-US builders borrow on the same terms through a US LLC, with no US credit history required.