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Do you want to custom build your Houston dream home?

Loan Amounts up to $510,400

Custom Building your Dream Home in the Houston Metro

Our one-time close transactions (single close) enables borrowers to close both the construction loan and the permanent loan at the same time. It offers both builders and borrowers a sense of security because the project budget is determined before closing and the permanent financing is in place before work begins, removing the uncertainty for changes in interest rates.

Custom Home Building Quick Facts

Minimum FICO score is 680

Primary Home or Second Home only.

Loan Amounts up to $484,350

Loan to Value is up to 90% of the new home.

One Closing saves money.

10% Contingency reserves are required of the Hard Costs.

All work must be done only by an approved Contractor.

After construction, the loan turns into a 30 year fixed rate mortgage.

Can you Qualify to Custom Build your Houston Metro Dream Home?


Everyone who qualifies for a Conventional Home Loan can qualify to build their own custom home.

Click here for Conventional
Loan Requirements

Call Now. 713-955-LOAN (5626)

Requirements of the Custom Build Home Loan


Your choice of Contractor

You will choose ANY Licensed Contractor you want; however, the Contractor must have at least three years of verified successful custom home building experience. Specifically, this means your Builder is deemed acceptable when our lender has determined they are qualified and experienced for the work being performed, have a proven ability to manage project budgets and complete construction on schedule. We do not endorse or recommend any builders; however, the Contractor must fill out a Lender application to make sure they meet a minimum requirement. Remember you are qualifying for the loan, not the Contractor. You must choose wisely.


Complete Plans and
Property Appraisal.

One full appraisal is required. A Property Inspection Waiver (PIW) is not allowed. The initial appraisal report must provide an “as completed" value that estimates the value of the property after completion of construction. Therefore, both, all plans and specifications must be completed prior to ordering an appraisal, and must be provided to the appraiser. To get the plans done, we recommend sitting down with a local architect from Houston or the surrounding area.


Eligible Property Types.

• Detached SFRs (includes Modular,Prefabricated & Panelized)
• Detached PUDs,
• Detached Condos
• Manufactured Homes


Eligible Borrowers.

• US Citizens
• Permanent Resident Aliens
• Non-Permanent Resident Aliens
• Non-Occupant Co-Borrowers
• Inter Vivos Revocable Trusts (sometimes called a "Revocable Living Trust"), and
• First-Time Homebuyers.

In fact, everyone who qualifies for a conventional loan can qualify to build their own custom home.


Lender sends Payments
to your Contractor

• During the construction period, the construction interest will be a fixed rate.
• Monthly Payments during construction will be interest only based on total draws to date.


Construction Timeframes

Your Houston Metro Custom Home is built within 6, 9,
or 12 months.

The allotment of time to build the home depends upon different factors:

• For a 6, 9, or 12 Month Construction Term the minimum FICO score is 700.
• For a 6 or 9 Month Construction Term the minimum FICO score is 680.

However, there is also a limitation based on the Loan to Value (LTV) of your custom home:

• For a 12 Month Construction Term the maximum LTV is 75%.
• For a 6 or 9 Month Construction Term the maximum LTV is 90%.

Thus, for a 12 month loan you must have both a 700+ FICO with a LTV of 75% or lower.


Permanent 30 year fixed Loan Rate at Completion

  • Upon completion of construction, the loan will automatically convert to permanent financing at the rate determined at closing. Payments on the permanent loan will be amortized over a 30 year term upon conversion.
  • Long term Lock with Float-Down Option: The permanent rate is set at closing with an option to float down the permanent rate to the current market rate at time of conversion to permanent financing. Eligibility to float down is based upon the following requirements:
  • Construction must be complete and finalized within 30 days of the Float Down Request Lock.
  • Float Down Rate will be based on current 60 day price on the day of the float down lock.
  • A loan modification will be required to reflect the new permanent interest rate.

The Custom Home Building Process

Build Your Custom Home in the Houston Metro Area

Obtaining affordable financing to build your own custom home in Texas can be as fast and easy as applying for conventional financing. Texas Property Lending would love to match you with the most suitable home building loan for your needs. Get started now by calling 713-955-LOAN (5626) to schedule your consultation.

You can do it.

Other Houston Home Loans include:

Does Your Realtor make you this happy?

Try our affiliate:


Our loan services at Texas Property Lending, Inc. are available to anyone purchasing a home. However, you can streamline your home purchase by combing the services of Texas Property Lending, Inc. with our affiliate Texas Property Realty as your real estate broker. Combining these services will help us (Texas Property Lending, Inc.) get you in your dream home quickly and could also decrease your overall costs. If you’d like to learn more about this bundling of services from Texas Property Lending, Inc, and how this could save you money, call now at 713-955-LOAN (5262).

Would you like a FREE monthly home valuation report?

Our 10% Non-Profit Donation Guarantee

We endorse the spirit of giving espoused by Bill and Melinda Gates, Warren Buffet, and others, in helping to reduce global inequality and human suffering. Each time you close a transaction with either affiliated business, Texas Property Lending Inc or Texas Property Realty, we donate 10% of earned Commissions to Charity. With each of your particular transactions, ask us for details!

“All lives have equal value.”

-Bill and Melinda Gates