Texas · Ground-Up Construction
Texas spec home and ground-up construction loans.
Our main product in Texas. Financing for spec houses, build-to-rent communities, infill lots and small residential buildings up to nine units. Up to 85% of cost, interest only on what has been drawn, draws released against inspected work, $1M to $5M.
By David Hodara · ·
85% LTC
Max leverage
$1M-$5M
Loan range
24-48h
Term sheet
On inspection
Draws
Texas ground-up construction market context
Texas permitted 140,579 single-family homes in 2025, more than any other state and about 15% of the US total (US Census Bureau, Building Permits Survey). At our size that building is spec homes in new subdivisions around Dallas-Fort Worth, Houston, Austin and San Antonio, teardowns replaced by one to three new houses in established neighborhoods, build-to-rent communities, and small buildings up to nine units. We lend up to 85% of total cost, land included when it is bought with the loan, with equity in first and draws following inspected work. A bridge loan up to 80% of value can carry the land while plans and permits are finished.
Two things decide the file. The first is the exit: a sale, or a refinance into DSCR at up to 80% LTV if the houses will be rented, and on a build-and-hold the reassessed property tax, plus any municipal utility district tax, has to fit inside that DSCR. The second is time: permit and utility timelines vary between cities in the same metro, and the term is written to the realistic one.
Non-US sponsors build in Texas on the same terms as US sponsors, through a US LLC, underwritten on the budget, the general contractor and the exit, with no US credit history required.
Typical loan products for Texas ground-up construction
Each deal gets routed to the product structure that fits. Most ground-up construction deals in Texas use one of the following.
Construction loans
Ground-up financing for spec houses, small residential buildings and build-to-rent, up to 85% of cost, interest only on the drawn balance, draws against inspected work.
Bridge loans
Lot or land acquisition while permits and horizontal work are finished, ahead of the first construction draw.
DSCR loans
The hold or the exit: long-term financing qualified on the property's rent rather than personal income, up to 80% LTV.
Buying Texas ground-up construction from outside the US
We finance ground-up construction in Texas for investors based outside the United States as readily as for US borrowers. The loan is made to a US LLC rather than to an individual, which keeps it business-purpose, and the underwriting looks at the property rather than at a US credit profile a non-resident has no way to build.
That means no US credit history, no US income documents, no foreign-national rate premium, and no requirement to travel to the United States to close. If you do not yet have the entity, forming one is a step in the process rather than a prerequisite you have to solve alone.
Top Texas markets we actively fund
We work ground-up construction deals across Texas, with deepest lender relationships in the metros below.
Texas ground-up construction FAQ
What loan to cost is available on a Texas spec build?
Up to 85% of total cost. The loan is also checked against the finished value, so where the value is close to the cost, value sets the amount.
Can you finance the land before the build?
Yes. A bridge loan up to 80% of value funds the lot or land acquisition, or a cash-out on land already owned, while plans, permits and utilities are finished. The construction loan takes over at the first draw.
Can a first-time builder borrow?
Yes, with an experienced general contractor, a detailed budget and a contingency. A sponsor with completed builds gets more leverage.
Do you finance larger developments in Texas?
Residential up to nine units per building and build-to-rent communities within $1M to $5M are in-house. Larger developments are placed through our capital-partner network.
What does the financing cost upfront?
Nothing. There are no upfront fees. Our fee is 1 to 2% of the loan, paid at closing, and the rate is set on the term sheet by leverage, the business plan and the sponsor's completed projects.
Can a foreign national finance ground-up construction in Texas?
Yes. We lend to a US LLC rather than to an individual, and we underwrite the property rather than a US credit profile, so a non-resident with no US credit history and no US income documents borrows on the same terms a US investor receives. You do not have to travel to the United States to close.
Other Texas asset classes
Got a Texas ground-up construction deal? Send it over.
Term sheet inside 48 hours, or a fast no so you can move on. Business-purpose investment property financing only.