Building on the Texas coast means building for wind. In Corpus Christi, the windstorm inspection that lets a new home qualify for coastal insurance is as important to the loan as the framing itself.
In short: LendingStreet finances ground-up construction of 1-8 unit investment property in Corpus Christi, Flour Bluff, Padre Island, Calallen and Portland. Loans are sized on loan-to-cost, released through inspected draws and priced per project. On the coast, plan for windstorm-rated construction with the inspections needed for coverage, flood elevation where it applies and property taxes with no homestead exemption.
The Southside, along Saratoga Boulevard and the Kostoryz and Airline corridors, has most of the city's newer subdivisions and draws families and medical workers. Calallen on the northwest side and Portland across the bay in San Patricio County are growing areas with good schools and newer homes.
Flour Bluff and Padre Island are closer to the water and to Naval Air Station Corpus Christi, with more vacation and second-home demand. Older central neighborhoods offer infill lots at lower prices.
Across the metro, newer subdivisions often sit on flat, clay-heavy ground where drainage design matters. Ask the developer how the lot drains and whether the subdivision has had standing-water problems after heavy rain.
| Area | Typical build | Key issue |
|---|---|---|
| Southside (Saratoga, Kostoryz) | Spec and build-to-rent homes | Subdivision lots, HOA rules |
| Calallen, Portland | Single-family and duplexes | Utility and drainage review |
| Flour Bluff | Rentals near the naval air station | Windstorm and flood requirements |
| Padre Island | Vacation and second-home builds | Flood elevation, STR rules, insurance |
We look at total project cost, meaning land, hard construction costs and soft costs such as plans, engineering, permits and fees, and size the loan as a share of that figure. That share is set per project.
Funds go out in stages after inspections confirm the work, not as a lump sum. Use the draw schedule calculator to map foundation, framing, rough-ins, drywall and finish against your budget so the cash you bring and the draws line up.
Nueces County is a designated catastrophe area, and many homes get wind coverage through the Texas Windstorm Insurance Association. To be eligible, new construction generally must be built to the windstorm building code and inspected during construction, with a certificate of compliance issued at completion. Missing an inspection can make coverage much harder to get.
Hire a builder who has built under the windstorm program, schedule inspections at the required stages and keep the paperwork. Lenders and future buyers will ask for it.
Many coastal and low-lying parcels sit in mapped flood zones, where new homes must be elevated and flood insurance is required. Get the flood zone and base flood elevation before you buy land, because elevation adds foundation cost.
Water supply has been a public issue for the city, with conservation stages and long-term supply projects under discussion. Ask the utility about connection availability and any restrictions on new service for your site.
We fund investors and builders putting up 1 to 8 units in and around Corpus Christi, usually through an LLC, and you sign for the loan personally. Our investor loans are business-purpose loans on non-owner-occupied property.
Expect questions about your last few completed projects, your general contractor's license and insurance, and how the budget was built. Files missing plans or permits, or run by a first-time builder without an experienced GC, generally do not move forward.
Texas has no state income tax, and local governments rely on property taxes. Investors do not get homestead exemptions, so a new rental is taxed on its full appraised value from the Nueces Appraisal District or San Patricio Appraisal District.
Insurance is the other large line. Wind, flood and standard property coverage together can cost far more than inland. Get quotes before the build is finished so the refinance math is realistic.
This example is illustrative and not a quote. An investor builds a three-bedroom-per-side duplex on the Southside, outside a high-risk flood zone, built to windstorm code. Land costs $50,000, hard construction costs $340,000 and soft costs $30,000, for a total project cost of $420,000. For illustration the loan covers 80% of cost, or $336,000, and the investor brings $84,000 plus closing costs; actual LTC is set per project.
At completion the appraisal comes in at $470,000, with total rent of $3,700 a month. Refinancing into a DSCR loan at 75% of value gives $352,000, which pays off the $336,000 construction balance. With estimated principal and interest of about $2,401, taxes near $820 and insurance near $290, the monthly payment is about $3,511 and the ratio is about 1.05x.
Taxes and insurance here total more than a quarter of the rent, which is typical on the coast and is why the quotes matter early.
| Item | Amount |
|---|---|
| Land | $50,000 |
| Hard costs | $340,000 |
| Soft costs | $30,000 |
| Total project cost | $420,000 |
| Construction loan (80% of cost, illustrative) | $336,000 |
| Investor cash before closing costs | $84,000 |
| Completed value | $470,000 |
| DSCR refinance (75% of value) | $352,000 |
| Monthly rent | $3,700 |
| Estimated principal and interest | $2,401 |
| Taxes and insurance | $1,110 |
| Estimated DSCR | About 1.05x |
Demand from the port, petrochemical plants, the naval air station and medical centers supports long-term rentals on the Southside and in Calallen. A DSCR refinance on completed rents is the usual exit.
On Padre Island and in Flour Bluff, some investors build vacation rentals. Some DSCR programs can qualify on projected short-term revenue, but check the city's STR registration and hotel occupancy tax rules first.
Send the address, plans, budget and timeline through the form below or call (877) 298-1001. LendingStreet reviews Corpus Christi builds directly and comes back with a term sheet that shows the loan amount, LTC and draw structure.
If you want the home eligible for TWIA coverage, generally yes. It must be built to code and inspected during construction. Plan this with your builder from day one.
Often, but the home must meet elevation requirements and carry flood insurance, which raises cost. Check the lot before you buy.
A DSCR refinance once the units are leased. DSCR loans qualify on rent, with no W-2s or tax returns, and LLC borrowers are standard.
Yes, we review projects across the metro, including Portland.
They are often the largest expense after the mortgage, and investors get no homestead exemption. Use the full rate when projecting the DSCR.
No. We lend only on non-owner-occupied investment property.
Sometimes, if an experienced licensed general contractor runs the job. A first-timer without an experienced GC, plans or permits usually does not qualify.
Our Texas construction loans page covers statewide topics.
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