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.
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.
Everyone who qualifies for a Conventional Home Loan can qualify to build their own custom home.
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.
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.
• Detached SFRs (includes Modular,Prefabricated & Panelized)
• Detached PUDs,
• Detached Condos
• Manufactured Homes
• 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.
• 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.
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.
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.
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).
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!
-Bill and Melinda Gates
Texas Property Lending is an Equal Housing Lender. As prohibited by federal law, we do not engage in business practices that discriminate on the basis of race, color, religion, national origin, sex, marital status, age, because all or part of your income may be derived from any public assistance program, or because you have, in good faith, exercised any right under the Consumer Credit Protection Act. Disclaimer: Programs subject to change without notice. All borrowers must qualify per program guidelines.