Ground-Up Construction Loans in Texas.
Vertical construction financing for ground-up builds, tear-down rebuilds and build-to-rent, released on a milestone draw schedule. Investors and developers can review program parameters and local considerations across 37 Texas markets.
Ground-Up Construction across Texas.
Across Texas, zoning readiness and utility access determine whether a site is financeable as construction or only as land. Inspection scheduling then sets the pace of every draw.
For build-to-rent in Texas, the takeout belongs in the original pro forma. The finished property has to clear a rental loan’s coverage test using projected market rent, the reassessed Texas tax bill on the improved value and an insurance quote on the completed structure — not merely appraise at the expected value.
Ground-up financing in Texas begins with the land. A site already zoned for the intended use with utilities lateral-ready can reach a term sheet in one to two days, while a site pending entitlement or a utility extension is underwritten as land rather than as a construction project until the path to first vertical work is defined.
Interest is charged only on the drawn balance, so a Texas build with a longer permit or inspection cycle accrues no carry on undrawn funds. Draw releases follow inspected milestones, which keeps the outstanding balance aligned with the value actually built on the site.
How the ground-up construction stack works.
Experience required: prior ground-up, general contracting or flip track record. Land must be zoned with utilities lateral-ready, and documented liquidity must support the build.
From application to exit in Texas.
- 1
Close on land
Fund the land plus the first construction tranche.
Close 21–30 days - 2
Build
Draws release at each inspected milestone.
Draw schedule - 3
Certificate
Vertical complete; certificate of occupancy issued.
12–24 mo term - 4
Exit
Sell, or refinance into DSCR or permanent debt.
Bridge-to-perm
Building a transaction that can move through underwriting.
For Ground-Up Construction Loans in Texas, the initial package should identify the borrower and ownership structure, property location, loan purpose, requested proceeds, sources and uses, existing obligations and target closing date. Historical operating statements, current occupancy information, material leases, capital budgets and relevant purchase or development documents allow reviewers to understand the request in context. If information is preliminary, the package should distinguish confirmed facts from assumptions that remain subject to diligence.
A credible business plan explains how value is protected or created during the proposed loan term. That may involve completing construction, renovating units, funding tenant improvements, resolving deferred maintenance, increasing occupancy, extending leases, improving operations or preparing the property for sale or permanent financing. Assumptions should be supported by market evidence and include enough contingency for changes in cost, timing, interest rates or leasing velocity.
Eligible collateral in Texas.
Explore asset-specific underwriting considerations.
Apartment communities, workforce housing, student housing and build-to-rent assets. Financing in Texas is evaluated against asset-specific cash flow, basis and execution considerations.
↗IndustrialWarehouse, distribution, manufacturing, cold-storage and last-mile facilities. Financing in Texas is evaluated against asset-specific cash flow, basis and execution considerations.
↗Mixed-UseIntegrated properties combining residential, retail, office, hospitality or other commercial uses. Financing in Texas is evaluated against asset-specific cash flow, basis and execution considerations.
↗Texas market directory.
Texas markets above 100,000 residents, ordered by population, each linking to local ground-up construction resources.
Can I finance a ground-up build in Texas?+
Yes, where the Texas site is zoned for the intended use with utilities lateral-ready, plans are approved and the borrower has a prior ground-up, general contracting or renovation track record.
Will the loan cover the land in Texas?+
Total cost includes land plus vertical construction, financed up to 85%. Closing funds the land together with the first construction tranche.
How is completed value determined in Texas?+
From an appraisal of the finished structure supported by comparable sales in the Texas area, with the loan capped at 75% of that completed value.
Additional loan programs in Texas.
DSCR Long-Term Rental Loans
Qualify on the property’s cash flow — no tax returns, no W-2s — for buy-and-hold rentals held in an entity.
View program ↗02Acquisition plus renovation capitalFix & Flip and Rehab Bridge Loans
Acquisition-plus-renovation capital for value-add residential, with the full rehab budget financed and drawn on inspection.
View program ↗04Subordinate capital stack solutionsCommercial Real Estate Mezzanine Financing
Subordinate capital that closes the gap between senior debt proceeds and the equity a sponsor is prepared to commit.
View program ↗