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. [Apply Now](https://cedartoplending.com/apply/) [Get a Quote](https://cedartoplending.com/contact/) Rate Starting at 12% Loan amount $50,000 - $1,000,000 Term Loan term set by the length of the project Last updated September 9, 2026 ## 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 1. 1 ### Apply online Fill out our contact form with your loan request details: the lot, plans, construction budget, permit status, and your timeline. 2. 2 ### Review We review each transaction personally and in-house, which allows us to make a lending decision quickly. 3. 3 ### Term sheet If your project fits our new construction program, you will receive a term sheet stating leverage, rate, points, and your draw schedule. 4. 4 ### Title We coordinate title review and closing documents directly with your title company. 5. 5 ### Close Once title work is clear and all documents are signed, we close and fund the initial draw of your loan. 6. 6 ### 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 - [Abilene](https://cedartoplending.com/service-areas/abilene/) - [Bowie](https://cedartoplending.com/service-areas/bowie/) - [Bridgeport](https://cedartoplending.com/service-areas/bridgeport/) - [Brownwood](https://cedartoplending.com/service-areas/brownwood/) - [Cleburne](https://cedartoplending.com/service-areas/cleburne/) - [Decatur](https://cedartoplending.com/service-areas/decatur/) - [Fort Worth](https://cedartoplending.com/service-areas/fort-worth/) - [Graham](https://cedartoplending.com/service-areas/graham/) - [Granbury](https://cedartoplending.com/service-areas/granbury/) - [Jacksboro](https://cedartoplending.com/service-areas/jacksboro/) - [Mineral Wells](https://cedartoplending.com/service-areas/mineral-wells/) - [Stephenville](https://cedartoplending.com/service-areas/stephenville/) - [Weatherford](https://cedartoplending.com/service-areas/weatherford/) - [Wichita Falls](https://cedartoplending.com/service-areas/wichita-falls/) - [Midland](https://cedartoplending.com/service-areas/midland/) ### Central Texas - [Waco](https://cedartoplending.com/service-areas/waco/) ### Northeast & East Texas - [Canton](https://cedartoplending.com/service-areas/canton/) - [Cedar Creek Lake](https://cedartoplending.com/service-areas/cedar-creek-lake/) - [Gilmer](https://cedartoplending.com/service-areas/gilmer/) - [Greenville](https://cedartoplending.com/service-areas/greenville/) - [Lake Fork](https://cedartoplending.com/service-areas/lake-fork/) - [Mount Pleasant](https://cedartoplending.com/service-areas/mount-pleasant/) - [Sulphur Springs](https://cedartoplending.com/service-areas/sulphur-springs/) - [Terrell](https://cedartoplending.com/service-areas/terrell/) - [Tyler](https://cedartoplending.com/service-areas/tyler/) [View all Texas service areas](https://cedartoplending.com/service-areas/) ## 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. [Apply Now](https://cedartoplending.com/apply/) [Get a Quote](https://cedartoplending.com/contact/) [Call 817-984-3129](tel:+18179843129) --- Canonical URL: https://cedartoplending.com/hard-money-loans/new-construction/