Texas · Construction
Texas construction & development financing.
Ground-up development financing for multifamily, mixed-use, industrial, build-for-rent, and commercial across Dallas-Fort Worth, Houston, Austin, and San Antonio. Up to 85% LTC, interest-only on drawn balance, draw schedules tied to milestones.
By David Hodara ·
5+
Active metros
85%
Max LTC
18-24 months
Typical term
5-10 days
Draw turn
Texas construction & development market context
Texas leads the US in new construction starts across multiple asset classes, driven by population growth, business-friendly regulation, and developable land supply. Dallas-Fort Worth and Houston dominate by volume; Austin and San Antonio have higher per-capita activity.
Construction underwriting in Texas focuses on sponsor experience (first-time developers face limited lender appetite at scale), GC track record on similar-scope projects, hard cost budget realism (Texas labor and materials have seen sustained inflation), entitlement status, and lease-up risk in the current absorption environment for Class A multifamily.
Typical loan products for Texas construction & development
Each deal gets routed to the product structure that fits. Most construction & development deals in Texas use one of the following.
Buying Texas construction & development from outside the US
We finance construction & development 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 construction & development deals across Texas, with deepest lender relationships in the metros below.
Texas construction & development FAQ
What's typical LTC for Texas construction loans?
Up to 85% LTC for experienced multifamily and industrial developers with strong submarket execution. Mixed-use and hospitality top out at 75-80% LTC. First-time developers typically capped at 65-70% LTC.
How does the Austin multifamily oversupply affect construction financing?
Lenders are more cautious on new Austin Class A multifamily starts. Pre-leasing requirements are tighter, interest reserves sized for longer lease-up, and DSCR-on-stabilized assumptions stressed. Some lenders have paused new Austin Class A multifamily starts entirely, focusing on value-add and BTR instead.
Are BTR (Build-for-Rent) developments financeable in Texas?
Yes, and increasingly active. BTR sits between SFR and multifamily for underwriting. Lenders want a clear path to stabilization (lease-up plan with property management partner) and an exit (sale to institutional SFR buyer or refi into permanent debt). DFW and Houston are the strongest BTR markets nationally.
What's the typical interest reserve on Texas construction loans?
Sized based on expected drawn balance over the loan term plus a buffer. On a $10M, 18-month construction loan at 10%, the reserve typically runs $700K-$900K, depending on draw pace assumptions and stabilization timeline.
Can a foreign national finance construction & development 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 can borrow on the same terms a US borrower receives. There is no foreign-national rate premium, and you do not have to travel to the United States to close. The structure is the same in Texas as in every other state.
Got a Texas construction & development deal? Send it over.
Term sheet inside 48 hours, or a fast no so you can move on. Business-purpose CRE financing only.