Do you want to custom build your Houston dream home?

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.

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Custom Home Building Quick Facts

Custom Home Quick Facts

Minimum FICO score is 680

Primary Home or Second Home only.

Loan Amounts up to $647,200

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.

Qualifying is Easy and Simple.

1. How’s My Credit

2. Loan Options

3. Approval Process

4. Steps to Closing

5. 6-12 months Build time

1. How’s My Credit

2. Loan Options

3. Approval Process

4. Steps to Closing

5. 6-12 months Build time

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.

Other home loans include:

We have your Best Rate.