A construction loan for real estate investors is a short-term, interest-only loan used to finance the ground-up construction of a property. These loans provide funding for land acquisition (if applicable), building materials, contractor labor, and other construction-related costs. Once the project is complete, many investors refinance or sell the property.

To qualify for a Texas construction loan, investors typically need:
– A credit score of 640 or higher
– Experience with at least one prior real estate project (preferred)
– A detailed scope of work and construction budget
– Approved or pending permits and plans
– Property located within Texas

We provide construction financing across the entire state of Texas, including:
– Houston
– Dallas
– Fort Worth
– San Antonio
– Austin
– El Paso
– Arlington
– Plano

Our loan amounts vary based on your project, experience, and location. In general:
– Loan amounts range from $150,000 to $5,000,000+
– Up to 85% Loan-to-Cost (LTC)
– Up to 70% of After Repair Value (ARV)

Funds are released in phases, known as “draws,” based on completed work milestones. An inspector verifies that each stage of construction is complete before disbursing the next portion of the loan.

Interest rates vary based on borrower qualifications, project size, and loan terms. Our rates typically start at:
– 9.5% to 12.5% interest-only
– No prepayment penalties for early payoff

Accordion Content

-Pre-approval: Within 24 hours
– Final approval and closing: 5–10 business days (depending on permits and title readiness)

Once construction is complete, many borrowers:
– Refinance into a long-term mortgage
– Sell the property for profit
– Hold the asset as a rental property using DSCR or long-term loans

Yes. While we prefer experienced investors, we consider first-time applicants with strong credit and well-prepared project documentation. Partnering with an experienced builder or GC can improve your approval odds.