What does the luxury spec LTC calculator show?

It builds all-in cost from lot, demo or site work, vertical hard cost, soft cost, contingency, and an interest reserve, then sizes max loan as the lower of 100% cost, 75% of as-completed value, and the $2.5M program ceiling on qualified luxury construction files.

Why is max loan the lower of cost and 75% LTARV?

Qualified luxury and jumbo construction can reach up to 100% LTC on files up to $2.5M — but the facility still funds the lower of cost and 75% as-completed value. When land is expensive relative to comps, LTARV binds first.

When does the $2.5M ceiling bind?

When both 100% of cost and 75% of as-completed value exceed $2.5 million. Split the project, bring more equity, or cut scope. The calculator flags which cap binds.

How is the interest reserve estimated?

Reserve ≈ average drawn balance × annual rate × months ÷ 12. Average drawn balance is a percent of max loan you choose (often 50%–70% across a draw schedule). Luxury builds run 14–18 months vertical plus 60–120 days marketing — add months accordingly.

Where do I submit a luxury spec or scrape construction file?

Use the new construction scenario form with plans, budget, GC contract, and submarket comps — or submit a scenario. Listed spec past CO: luxury bridge. Call (833) 264-7776 for time-sensitive contracts.

What does the luxury spec LTC calculator show?

It builds all-in cost from lot, demo or site work, vertical hard cost, soft cost, contingency, and an interest reserve, then sizes max loan as the lower of 100% cost, 75% of as-completed value, and the $2.5M program ceiling on qualified luxury construction files.

Why is max loan the lower of cost and 75% LTARV?

Qualified luxury and jumbo construction can reach up to 100% LTC on files up to $2.5M — but the facility still funds the lower of cost and 75% as-completed value. When land is expensive relative to comps, LTARV binds first.

When does the $2.5M ceiling bind?

When both 100% of cost and 75% of as-completed value exceed $2.5 million. Split the project, bring more equity, or cut scope. The calculator flags which cap binds.

How is the interest reserve estimated?

Reserve ≈ average drawn balance × annual rate × months ÷ 12. Average drawn balance is a percent of max loan you choose (often 50%–70% across a draw schedule). Luxury builds run 14–18 months vertical plus 60–120 days marketing — add months accordingly.

Where do I submit a luxury spec or scrape construction file?

Use the new construction scenario form with plans, budget, GC contract, and submarket comps — or submit a scenario. Listed spec past CO: luxury bridge. Call (833) 264-7776 for time-sensitive contracts.

Luxury Spec LTC Calculator | Jaken Finance Group

Use this luxury spec LTC calculator to size a scrape, custom spec, or coastal vertical before you commit equity. Qualified luxury construction at Jaken Finance Group can reach up to 100% LTC on files up to $2.5M — but the loan still funds the lower of all-in cost and 75% of as-completed value. Interest-only carry sits inside 8.99%–13.5%.

Product paths: luxury new construction · jumbo hard money · luxury bridge · luxury fix and flip · Exit playbook: 60–120 DOM exit guide

Luxury spec LTC calculator

Size all-in cost, interest reserve, and max loan as the lower of 100% cost, 75% of as-completed value, and $2.5M. Estimates only — not a loan offer.

Cost stack Lot / land basis ($) Demo / site work ($) Vertical hard cost ($) Soft costs ($) Contingency (% of demo + vertical)

Value & carry As-completed value ($) Interest rate (% annual, IO) Qualified luxury construction: 8.99%–13.5% interest-only. Reserve months (on avg drawn balance) Avg drawn % of max loan (for reserve)

All-in cost

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75% LTARV cap

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Max loan

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Equity gap

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Est. interest reserve

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Gross margin vs ARV

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What “all-in” must include on luxury specs

Luxury sponsors understate soft cost, coastal premiums, and carry. The calculator forces the common lines into one stack:

Lot / land basis — purchase or as-is value including existing structure in a scrape
Demo / site — scrape, haul-off, seawall, dewatering, utilities
Vertical hard cost — structure, finish, pool, impact glazing where required
Soft costs — plans, coastal or historic engineering, permits, insurance
Contingency — typically 10%–15% of demo + vertical on custom work
Interest reserve — months of IO on the average drawn balance through CO plus marketing

Flood elevation, wind-load glazing, and bonding lines belong in hard or soft — not in hope. If you omit them, the equity gap line on the widget is where they land.

Max loan = min(100% cost, 75% LTARV, $2.5M)

Marketing says “up to 100% LTC on qualified luxury files.” Both still sit under the as-completed cap and program ceiling. If all-in is $1.42M and as-completed comps support $1.40M, then 75% of value is $1.05M. The loan that can close is $1.05M — not 100% of $1.42M.

When both cost and 75% LTARV exceed $2.5M, the program ceiling binds. Split phases or bring equity. Standard-margin infill without luxury finish may fit the land & spec-margin calculator instead.

Worked example — Paradise Valley scrape (calculator defaults)

Line	Amount
Lot / existing structure	$585,000
Demo / site	$28,000
Vertical hard	$1,012,000
Soft	$64,500
Contingency 11%	~$115,000
As-completed	$1,400,000
Rate / months / avg drawn	11% IO · 17 mo · 60%

Run the widget: 75% of $1.40M is $1.05M. When LTARV binds, the equity gap is the story — not the headline LTC. Narrative twin: Paradise Valley luxury scrape example.

Worked example B — Naples coastal spec

Lot $620,000, site $48,000, vertical $650,000, soft $68,000, flood and glazing premium in vertical or site, contingency 12%, as-completed $1,680,000, rate 11.25%, 18 months, 55% average drawn.

75% of $1.68M is $1.26M. Coastal files often bind at LTARV when cost and value align thin. See Naples coastal luxury spec example.

Sizing reserve through vertical and marketing

Luxury vertical runs 14–18 months, not a flip term. Add 60–120 days on market after certificate of occupancy. A reserve of “six months on full commitment from day one” understates peak-draw months and ignores post-CO carry.

If DOM slips, the exit playbook is listed bridge and price-cut cadence — not a panic slash at day 45. DSCR hold at 70%–75% LTV is the rental fallback when the jumbo buyer pool fails.

Gross margin vs lender loan amount

Gross margin (as-completed minus all-in) is a sponsor screen. It is not the loan amount. A positive margin can still need a large cash check if LTARV binds. Sale costs, carry overrun, and concessions eat margin after CO.

Compare desks: volume flip vs jumbo construction · ground-up vs fix and flip.

Luxury cluster — geo and product hubs

How Jaken Finance Group underwrites luxury specs

We finance business-purpose investment property only. Credit is reviewed. Approval rides on survey, permit path, budget, GC, submarket comps, and exit — not on a W-2 story. Qualified construction and bridge price at 8.99%–13.5% interest-only. Close targets 10–14 business days when the package is complete.

Apply: new construction scenario · submit a scenario · (833) 264-7776.

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Calculator outputs are educational estimates only. Rates, terms and conditions offered only to qualified borrowers and are subject to change without notice. All loans are subject to full underwriting. Jaken Finance Group only finances non-owner occupied investment properties.

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Luxury Spec LTC Calculator