New Construction Loans in Texas
There's something special about being the first to live in a home. Whether you're building from the ground up or buying a new home from a builder, the right loan makes the process smoother. A construction loan pays for the build in stages and turns into your regular mortgage when the home is done. I'll help you plan the financing so you can focus on the fun parts, like picking floor plans and finishes.
Why Buyers Choose a Construction Loan
One Closing
A one-time close loan covers the build and your mortgage with one set of closing costs.
Loan Options That Fit
Construction loans are available with FHA, VA, USDA, and conventional programs.
Use Your Land
Your down payment can come from a gift from family.
Pay as It's Built
Your builder is paid in stages as each part of the home is finished.
Builder Offers Compared
I'll compare the builder's lender incentives with other options so you see the full cost.
Things to Know
There are two main ways to finance a build. A one-time close loan combines the construction loan and your mortgage into one. A two-time close loan has a separate construction loan, then a second closing for your mortgage. Your builder must be licensed and approved by the lender, and you'll need plans, a budget, and a signed building contract. The appraisal is based on what the home will be worth when it's finished. Building usually takes several months, so we'll talk about how to protect your rate while you wait.
Common Questions
What's the difference between a one-time close and a two-time close?
A one-time close covers the build and your mortgage in one loan, so you only qualify and pay closing costs once. A two-time close has two separate loans and two closings. It can offer more flexibility, but you'll qualify twice and pay closing costs twice.Can I build on land I already own?
Yes. If you own your land, its value may count toward your down payment. That can lower the cash you need to bring to closing.Do I have to use the builder's preferred lender?
No. You can choose your own lender. Builders sometimes offer incentives if you use their lender, so I'll compare the total cost of both options. Sometimes the incentive is the better deal, and sometimes it isn't.How much down payment do I need for a new build?
It depends on the loan. VA and USDA construction loans may allow zero down for buyers who qualify, and FHA allows as little as 3.5% down. Conventional construction loans usually need more down.Can I lock my rate while my home is being built?
Yes. Many lenders offer extended rate locks for new construction, usually for a fee. Some include an option to lower your rate if rates drop before closing. We'll pick the approach that fits your timeline.
Want every step in one place?
My free guide walks you through the whole process, from your first call to closing day.
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