Advanced Search
Your search results

Birmingham Builder Special Program 2.99% [updated 8/26/23]

Posted by Dan B on August 30, 2023

Note #1: this program is subjected to changes by the builder/provider.

Note #2: this program is available to BOTH US based investors and foreign investors

About The Builder

  • Largest builder in AL.
  • Currently doing 800 homes and expected to do 1500 in 2024.
  • Recent properties in Huntsville, Birmingham, Clinton, Baldwin County & (coming soon) in Central FL.

Investment Plan

  1. Purchase the property with a 2.99% int. only loan for 2 years
  2. Refinance into a permeant loan at market rate (hopefully lower than today) in two years.

Loan Program

Interest Rate2.99%
Placement Fee1% of Loan Value
Processing Fee$400
Application Fee$195
AmortizationInterest only, compounded monthly with monthly payments.
Term24 months*
Prepayment1 year prepayment penalty.
* Additional year extension may be approved. The rate would be adjustable at Prime+1% for only 1 year. No option for a 4th year financing.

Conditions and Terms

  • Only available on the builder’s properties/product
  • Owner financing program is a commercial note.
    • This program is to be used only for commercial purposes and cannot be used for primary home buyers.
  • 25% down payment
  • Minimum credit score, based on median score:
    • No buy down points
    • 740+ as low as 2.99%
    • 700 – 739 as low as 3.99%
    • 660 – 699 as low as 4.99%
  • Must be purchased in an Alabama LLC, personally guaranteed
  • Max 50% back end DTI (debt to income) ratio, including 75% of rent
  • Builder’s property management co. must be retained for property management for the life of the note (loan). Fees are:
    • 8% monthly fee
    • 80% lease fee
  • Payments due on the 1st and late after the 5th.
    • $200 late fee after the 5th of the month.
  • Required escrows or Taxes and Insurance
  • 1 year pre-payment penalty:
    • 1 year prepayment penalty equaling the interest due. Example: if loan refi’s after 1 month, PPP would be for 11 months of interest and lowers monthly as the year progresses.
  • If loan defaults by 30 days, built-in clause that rents be paid directly to mortgage holder until loan is caught up.
  • Required docs:
    • Application and docs must be submitted within 24-48 hours of contract finalization.
    • One month’s pay stubs
    • Last filed tax return with W2 or 1099
    • Two months bank statements showing down payment and 6 months reserves


To reserve a property with Owner-Financing Program:
1) Reservation Agreement
2) BUYER HAS 24 HOURS TO APPLY through Owner-Financing Portal
3) BUYER will receive approval/denial within 24 hours of application COMPLETION
4) $10,000 Earnest Money due upon approval.
5) CONTRACT will be sent to Buyer for signing.
6) Inspection to be scheduled within 24 hours of contract finalization.

Sample (HUD) Closing Statement


Compare Listings