Texas Construction Loans
Ground-up financing built for the pace of Texas growth – from Austin infill lots to master-planned communities ringing Dallas-Fort Worth and Houston. We size loans around your budget and completed value, not a mountain of paperwork, and release draws fast so your crews keep moving. Rates from 9.5%, closing in as few as 10-20 days.
- Financing custom homes, spec builds, multifamily & commercial statewide
- Up to 85% loan-to-cost and up to 75% of completed value
- Interest-only during construction · rates from 9.5%
- Major metros, master-planned suburbs, and Gulf Coast markets
- LLCs, builders & foreign nationals welcome · all 254 Texas counties
- Tell us about your projectCity or county, land, plans, and total budget.
- Get a same-day term sheetWe size the loan around cost, completed value, and your plan.
- Close and start buildingFirst draw funds fast, then draws release on schedule.
Texas Construction Loans – Key Facts (2026)
- What it is: Interest-only, draw-based financing to build a property from the ground up anywhere in Texas, sized around project cost and completed value rather than personal income.
- Why Texas: No state income tax, sustained population growth, and a business-friendly permitting environment across most jurisdictions keep builders active in every major metro and beyond.
- Building considerations: Houston’s lack of a formal citywide zoning code, Gulf Coast windstorm and wind-borne-debris requirements near the coast, and locally adopted building codes that vary by city and county all factor into planning.
- Leverage: Up to 85% of total project cost and up to 75% of the completed, after-construction value.
- Structure: Interest-only during a 12-24 month construction term, rates from 9.5%, with draws released as inspected work is completed.
- Lender: CambridgeHomeLoan.com – direct lender since 1998, NMLS #1826020, lending in all 254 Texas counties.
Eligible projects
Texas construction projects we finance
From a single custom home in the Hill Country to a multi-building development in a Dallas-Fort Worth suburb, we finance business-purpose construction projects across the state:
Custom & Single-Family Homes
Ground-up builds on Hill Country lots, infill city lots, and large-acreage suburban sites.
Spec Home & Master-Planned Communities
Multi-home builds in fast-growing Texas suburbs, financed individually or as a builder portfolio line.
Multifamily & Build-to-Rent
New apartment buildings and build-to-rent communities across Texas’s fastest-growing corridors.
Commercial & Mixed-Use
New office, retail, and mixed-use buildings in urban infill sites and suburban growth corridors.
Construction financing
What is a Texas construction loan?
A Texas construction loan funds the actual building of a property, from site work and foundation through framing, finishes, and final inspection. Funds are released in draws as each stage of construction is completed and inspected, and you pay interest only on the amount that has actually been drawn – not on the full committed loan. In Texas, underwriting also accounts for locally adopted building codes (which vary city to city and county to county), Houston’s distinctive lack of a formal citywide zoning ordinance, and Gulf Coast windstorm and wind-borne-debris requirements for coastal counties.
We size the loan two ways: as a percentage of total project cost (land plus hard and soft construction costs), and as a percentage of the property’s estimated value once construction is complete. We lend up to 85% of cost and up to 75% of that after-completion value, with rates from 9.5% on a 12-24 month interest-only term. When the project is finished, you can sell it, or refinance into a long-term loan – either as a separate transaction or, with our one-time-close option, automatically as part of the same loan.
| Secured by | The land and the property being built (asset-based) – qualified on project cost, value, and your plan |
| Loan amount | $100,000-$100,000,000 · custom homes, spec builds, multifamily, and commercial |
| Leverage | Up to 85% loan-to-cost · up to 75% loan-to-value on completed (ARV) value |
| Structure | Interest-only during construction · rates from 9.5% · 12-24 month term · draws released against completed work |
| Texas-specific | Locally adopted codes and permitting vary by city/county; Gulf Coast windstorm certification considered for qualifying coastal counties |
| Coverage | All 254 Texas counties |
Loan programs
Texas construction loan programs
Choose the structure that matches how you plan to build and exit:
Ground-Up Construction
Interest-only financing to build a single project anywhere in Texas, with draws tied to completed work.
Construction-to-Permanent
A single closing that funds construction and then converts to a long-term loan automatically once the project is complete.
Builder Spec & Portfolio Lines
A revolving line for builders running several spec homes across a Texas master-planned community.
Land Acquisition + Construction
One loan to acquire a raw or improved Texas lot and fund the construction that follows, closed as a single transaction.
Why build in Texas
Why builders and developers choose Texas
- No state income taxA long-running draw for both residents and out-of-state investors, supporting steady demand for new construction.
- Some of the nation’s fastest-growing metrosAustin, Dallas-Fort Worth, Houston, and San Antonio all continue to add residents and jobs at a pace few states can match.
- Room to buildComparatively available land and, in many jurisdictions, a faster and more predictable permitting process support larger-scale ground-up projects.
- Financing that keeps paceFast draw turnaround and streamlined underwriting mean your project doesn’t slow down waiting on the lender.
Free tool
Construction loan & draw budget calculator
This tool estimates your total project cost, loan amount, and required equity, then estimates the average monthly interest-only payment during construction, using a typical assumption that the outstanding balance averages about half of the total loan amount as draws are released over the build. Enter your numbers to see the estimate. Illustrative only; final terms depend on your plans, budget, and underwriting.
Your project
Illustrative only; not a commitment to lend. Assumes an average outstanding balance of roughly 50% of the loan amount over the construction term, and excludes permits, impact fees, insurance, reserves, and closing costs. The interest rate is an example input, not a quote.
How we compare
CambridgeHomeLoan vs. Texas community banks
Texas community banks and credit unions can offer solid construction terms if you already bank with them, but their process often depends on an existing relationship and a lengthy internal approval. Here is how our builder-focused program typically differs. Where we lead, it is highlighted.
| Feature | CambridgeHomeLoan | Texas Community Banks (typical) |
|---|---|---|
| Qualifies on | Project cost, value & plan | Borrower relationship plus the project |
| Documentation | Streamlined – no exhaustive financials | Full financials, often a banking relationship |
| Time to close | As fast as 10-20 days | Often 45-90+ days |
| Draw turnaround | Typically 3-5 days | Often 1-2 weeks or longer |
| Houston & unzoned areas | Underwritten as routine business | Can be unfamiliar territory for out-of-state banks |
| Exit / refinance | In-house one-time-close option | Usually a separate permanent loan |
| Model | Direct lender since 1998 | Bank or credit-union backed |
Traditional-lender column is a generic composite of commonly seen terms as of 2026, subject to change, and does not describe any specific lender. For general comparison only.
Local markets
Texas construction loans by city
Construction and property considerations vary a lot within Texas – an Austin Hill Country custom home, a Houston infill duplex, and a Frisco master-planned subdivision are different underwriting conversations. Here is a snapshot of what we typically see in some of the state’s most active building markets:
Austin
Tech-driven growth continues to fuel infill and teardown-rebuild construction in central neighborhoods, alongside Hill Country custom homes subject to local watershed and impervious-cover rules.
Houston
The nation’s largest city without a formal citywide zoning code, giving builders flexibility for mixed-use and infill projects, plus strong energy-sector-driven demand and master-planned suburban growth.
Dallas
Ongoing corporate relocations are driving multifamily and commercial ground-up demand, with urban infill construction continuing in close-in neighborhoods near downtown.
San Antonio
A large military presence around Joint Base San Antonio supports steady rental housing demand, while comparatively affordable land continues to fuel new subdivisions.
Fort Worth
Rapid westward expansion of the Dallas-Fort Worth metro is driving both residential subdivisions and industrial construction, alongside redevelopment near the historic Stockyards district.
El Paso
Binational trade and logistics growth along the border supports industrial and warehouse construction, with more affordable land also fueling single-family development.
Plano
An established Dallas-Fort Worth suburb where major corporate campuses support strong demand for luxury custom homes and continued infill construction.
Frisco
One of the fastest-growing cities in the country, with master-planned residential communities and a sports-and-entertainment district driving significant commercial ground-up development.
McKinney
A historic downtown paired with rapid suburban growth, as new single-family subdivisions continue to expand outward from the traditional town center.
Round Rock
Part of Austin’s northern tech corridor, with strong demand for build-to-rent single-family communities and multifamily construction serving a growing workforce.
Katy
A fast-growing Houston suburb known for master-planned communities and a steady pipeline of new single-family subdivisions serving commuting families.
The Woodlands
A large master-planned community north of Houston combining luxury single-family construction with ongoing mixed-use and commercial development.
We are serving all over Texas – if your city is not listed here, please call to discuss or submit the application so that we can check.
How it works
Get your Texas construction loan in three steps
Submit your plans
Tell us the city or county, land, your plans and specs, the total budget, and whether you’ll sell or hold when it’s done.
Get a same-day term sheet
We review the project cost, completed value, and your experience – with streamlined documentation – and send clear terms.
Close and start drawing
We close, fund your first draw, and release future draws quickly as each stage of construction is inspected and approved.
Requirements
Texas construction loan requirements
| Down payment / equity | As little as 15-20% of total project cost, depending on experience and the project |
| Credit | 640+ FICO typical; deal-first, exceptions considered |
| Income docs | Streamlined – asset and project-based; personal income is not the primary driver |
| Loan amount | $100,000-$100,000,000 · custom homes, spec builds, multifamily, and commercial |
| Plans & permits | Approved plans and local permits (or in-process), a detailed cost breakdown, and a builder or general contractor |
| Vesting | Individual, LLC, or builder entity · foreign nationals eligible |
| Exit | Sale upon completion, or refinance to a long-term loan (one-time-close or two-time-close) |
Answers
Texas construction loan FAQ
What is a Texas construction loan?
A Texas construction loan funds the building of a property from the ground up – site work, foundation, framing, and finishes – through to final inspection, anywhere in the state. Funds are released in draws as each stage is completed and inspected, and you pay interest only on the amount actually drawn.
We lend up to 85% of total project cost and up to 75% of the completed, after-construction value, with rates from 9.5% on a 12-24 month interest-only term. These are business-purpose loans for custom homes, spec builds, and ground-up multifamily or commercial projects, available from $100,000 to $100,000,000 in all 254 Texas counties.
Do you finance construction in Houston, which has no formal zoning code?
Yes. Houston’s approach – regulating land use primarily through deed restrictions, subdivision platting, and building codes rather than a citywide zoning ordinance – is routine business for us. We underwrite based on the project’s plans, applicable deed restrictions, and local permitting rather than a zoning designation that doesn’t exist citywide.
That flexibility is part of what makes Houston attractive for mixed-use and infill construction, and we structure loans accordingly.
Do you finance coastal construction subject to Texas windstorm requirements?
Yes. Coastal counties along the Gulf, including those in the designated catastrophe area, can require wind-borne-debris protection and windstorm insurance certification through the Texas Department of Insurance or the Texas Windstorm Insurance Association. We factor these requirements into underwriting for qualifying coastal projects.
How do construction draws work?
Instead of receiving the full loan amount at closing, you receive an initial draw to begin work, then request additional draws as each phase – foundation, framing, mechanicals, finishes, and so on – is completed. We typically inspect the completed work before releasing the next draw, with turnaround of about 3-5 days.
What is the difference between loan-to-cost and loan-to-value on a construction loan?
Loan-to-cost (LTC) compares the loan amount to your total project cost – the land plus hard construction costs and soft costs like permits and design. Loan-to-value (LTV) compares the loan amount to the property’s estimated value once construction is complete, often called the after-completion value.
We size your loan using both measures and lend against whichever is more conservative: up to 85% of cost, and up to 75% of completed value.
What is the difference between a one-time-close and a two-time-close construction loan?
A one-time-close construction loan combines the construction financing and the long-term loan that follows it into a single closing, converting automatically once the project is complete. A two-time-close structure treats construction and permanent financing as two separate loans, closed at different times, offering more flexibility if you are not yet certain whether you will sell or hold the finished property.
What happens when construction is finished?
Once the project reaches completion and passes final inspection, you can sell the finished property and repay the construction loan from the proceeds, or refinance into a long-term loan and hold it as a rental or for your own use. With a one-time-close loan, that conversion to permanent financing happens automatically as part of the same loan.
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© 2026 CambridgeHomeLoan.com · NMLS #1826020 · 4830 W Kennedy Blvd, Tampa, FL 33609 · (800) 826-5077 · Equal Housing Lender. Construction loans are business-purpose loans for the construction of non-owner-occupied or investment property and are not available for primary residences except where a construction-to-permanent product specifically permits it. Rates, points, loan-to-cost, loan-to-value, terms, draw schedules, and closing timelines are illustrative, subject to change without notice, and subject to borrower, project, and deal qualification and underwriting approval. “Rates from 9.5%,” “up to 85% loan-to-cost,” and other maximums reflect the strongest profiles and are not a quote or commitment to lend. Completed values are estimates confirmed by an appraisal or valuation. Calculator results are illustrative and exclude permits, impact fees, insurance, reserves, and closing costs. City descriptions are general market observations for illustration only and are not property-specific advice. Comparison figures are generic market composites for illustration only and are not the terms of, or an endorsement of or by, any specific lender. Illustrations on this page are artwork and do not depict specific properties or projects. Borrowers are responsible for confirming applicable local building codes, windstorm certification, deed restrictions, and permitting requirements with licensed professionals. This page is informational and does not constitute financial, legal, tax, or investment advice.