Case Study: Alabama Spec Home Builder achieves profitable new home financing with Lima One Capital

Alabama Spec Home Builder secures 82% loan-to-cost financing with Lima One Capital

An Alabama spec home builder, which develops starter homes in communities around Dothan, faced the challenge of finding a lender willing to finance projects in smaller towns and at lower price points. The builder turned to Lima One Capital for a new construction loan to fund a build in Midland City.

Lima One provided a solution by financing 82% of the blended land and construction costs with a $172,200 loan. The six-month build resulted in a 1,500 square foot home that sold for $254,900, yielding a solid profit margin for the builder. As a result of this successful partnership, Lima One has now funded 14 projects for this builder, totaling $2.75 million in financing.