Texas hard money loans
New Construction Loans
Construction financing for Texas builders, on investment or non-homestead property only. Up to 90% loan to cost, interest-only payments for the entire life of your loan, and draw fees starting at $250.
Rate
Starting at 12%
Loan amount
$50,000 - $1,000,000
Term
Loan term set by the length of the project
Last updated
What is a new construction loan?
A new construction loan is short-term financing that funds your investment property build from the ground up. We release funds in scheduled draws as each stage is completed, with interest-only payments during construction, on non-owner-occupied property only.
Terms snapshot
- Rate
- Starting at 12%
- Points / origination
- Origination fee of 2% to 4%
- Doc fee
- $995 Document Fee
- Loan amount
- $50,000 - $1,000,000
- Term
- Loan term set by the length of the project
- Max leverage
- Up to 70% Loan to Value · Up to 90% Loan to Cost
- Payments & fees
- Interest only payments for the entire life of the loan · NO prepayment penalty · Draw fees start at $250
- Property types
- Single-family spec, Multi-family, Build-to-rent, Custom investment builds
- Owner-occupied
- Not eligible - investment / non-owner-occupied only
Example New Construction Loan
| Lot value | $90,000 |
|---|---|
| Construction budget | $260,000 |
| Completed value | $520,000 |
| Estimated loan amount | Up to ~90% loan to cost, capped at 70% of completed value |
| Borrower cash to close | Your equity contribution, plus points, fees, and reserves |
| Monthly interest estimate | Interest-only on funds drawn |
| Exit strategy | Sell your completed build, or refinance into a long-term loan once the property is stabilized. |
Illustrative only. Not a quote or a commitment to lend.
How funding works
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Apply online
Fill out our contact form with your loan request details: the lot, plans, construction budget, permit status, and your timeline.
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Review
We review each transaction personally and in-house, which allows us to make a lending decision quickly.
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Term sheet
If your project fits our new construction program, you will receive a term sheet stating leverage, rate, points, and your draw schedule.
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Title
We coordinate title review and closing documents directly with your title company.
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Close
Once title work is clear and all documents are signed, we close and fund the initial draw of your loan.
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Draws
Construction funds release in draws as your completed work is inspected and approved.
Documents Required
The usual list. Some loan programs require one or two more items which will be requested as needed.
- Executed purchase contract or proof of lot ownership
- Entity formation documents
- Government-issued ID
- Plans and specifications
- Detailed construction budget
- Permit status / permits
- Builder profile / experience
- Proof of insurance (builder's risk)
- Title company contact
- Exit strategy
What we can't fund
- Owner-occupied / primary residence request
- Unresolved title issues
- Unsupported or unrealistic ARV
- Weak or undefined exit strategy
- Insufficient documentation
- Unsupported property type
Frequently asked questions
What is a Spec Construction Loan?
Spec is short for speculative, which describes the basis for your loan. We lend on what we expect your property to be worth once construction is finished.
How does your draw process work?
Construction funds are released in draws against your completed and inspected work, staged around your build milestones. Draw fees start at $250.
What plans and documents do you need?
We ask for complete plans and specs, a detailed line-item budget, your permit status, and your builder profile. This program is for investment or non-homestead property only.
Texas markets we serve
North Central & West Texas
Central Texas
Northeast & East Texas
Apply for Texas New Construction Loans
We underwrite every loan in-house. Fill out our short application or call us - we look forward to working with you on your next Texas investment property.