Leverage on Spec Build with no PG?

[Brian Bailey]

Looking for and welcome referrals of lenders that will do Non-PG land/construction and/or construction loans.  Curious what terms, if any, any of you are seeing without the PG.

[Mike H.]

Why would you need non-PG on your construction loans? The lenders I use for new construction all have PG requirements and their rates aren't cheap (i.e. 10 to 12% even).  Without a PG, I'm guessing your rates are going to be higher unless you find that unicorn of a lender.

But why would you not be willing to give a PG?