📞 (877) 298-1001 · Mon-Sat 7am-9pm CT · Lending in Texas · NMLS #1734316
— CONSTRUCTION LOANS · HOUSTON, TX

Construction in Houston
Up to 85% LTC. 24-Month Terms.

Houston real estate developers: ground-up construction financing for spec homes and investor projects. Up to 85% of total costs. Draw schedules aligned to milestones.

Check My Houston Rate →
9.50%
From Rate
85%
Max LTC
$5M
Max Loan
24 Months
Term

Construction Loans in Houston, TX — Key Facts for Builders

Why Houston Is a Strong Market for Construction Investors

Houston is the 4th largest US city and the most diverse major metro in the country. The Texas Medical Center (largest in the world), energy sector, port infrastructure, and NASA drive employment across industries. Lower median prices than Dallas or Austin mean better cash flow for rental investors. Suburbs like Cypress, Katy, and Spring routinely deliver 8-10% rental yields.

Median Price
$275,000
Citywide
Rental Yield
7.5%
Average gross
Appreciation
3.8%
YoY
Metro Pop
7.2M
Greater Houston

Active Houston Investor Neighborhoods

HOUSTON

Montrose

Active investor market with strong rental demand and construction activity.

HOUSTON

The Heights

Active investor market with strong rental demand and construction activity.

HOUSTON

Midtown

Active investor market with strong rental demand and construction activity.

HOUSTON

Museum District

Active investor market with strong rental demand and construction activity.

HOUSTON

Memorial

Active investor market with strong rental demand and construction activity.

We also fund investments throughout the greater Houston metro including Cypress, Katy, Spring, Humble, and Sugar Land.

Recent Houston Closings

SFR Spec Build · Montrose
$330K Construction Loan
Closed
85% LTC · 18-month term · 5 draws · experienced builder · closed in 21 days
Duplex New Build · The Heights
$440K Construction Loan
Closed
80% LTC · 24-month term · 6 draws · took out with DSCR refi at CO
Infill Development · Midtown
$605K Construction Loan
Closed
82% LTC · 24-month term · 7 draws · 3-lot subdivision · closed in 30 days

Key Considerations for Houston Investors

Permit and approval timelines

Houston permitting varies by submarket — 30-60 days in some areas, 4-6 months in others. Include in budget.

Builder qualifications

Houston construction lenders favor experienced builders. First-time builders qualify with GC partnership.

Draw schedule structure

Typical Houston draws: 10-15% at closing, 5-7 draws during construction, 10% at CO. Inspections required.

Take-out financing

Construction loans must be refinanced at completion. Plan take-out: 30-year DSCR for rentals, traditional for sales. Houston's strong market makes take-outs reliable.

Frequently Asked Questions — Houston Construction

What's the maximum LTC on a Houston construction loan?

Up to 85% LTC. First-time builders may be capped at 75-80%. Experienced builders access 85%+ reliably.

Do I need to be an experienced builder for a Houston construction loan?

First-time builders can qualify with a GC partnership, strong subs, and adequate reserves.

How does the Houston draw schedule work?

10-15% at closing (lot + permits), 5-7 milestone draws during construction, 10% at CO. Each requires inspection.

What's the typical construction loan term in Houston?

Construction loans in Houston run 12-24 months. Most spec builds complete in 9-14 months.

What permits do I need in Houston before closing?

Most lenders require permits in-hand or at final approval before funding vertical construction.

Can I use a construction loan for a Houston rental property build?

Yes. Build-to-rent is strong in Houston. Close with construction loan, build, take out with 30-year DSCR at CO.

What credit score is needed for a Houston construction loan?

Most programs require 680+ FICO. Strongest pricing at 720+.

What loan amounts are available for Houston construction?

Construction loans in Houston range from $250K to $5M+. Most SFR spec builds fall in $300K-$800K.

Related Houston Loan Programs

DSCR Loans in Houston → Fix & Flip in Houston → Bridge in Houston → Construction in Texas →

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