New Construction and Construction Loans in Houston and Across Texas Financing a newly built home is different from financing resale property. The structure, appraisal approach, timeline, and payment strategy all change depending on whether the home is still being built or already completed. We structure new construction and new build home loans across the Greater Houston area and throughout Texas. Whether you are building from the ground up or purchasing a completed new home from a builder, the loan strategy must match the project stage. There are two primary paths. Construction Financing During the Build If the home is not yet completed, financing must account for draw schedules, inspections, and staged disbursements. In Houston, the most common structure is a one time close construction loan. You close once, the loan funds in phases during construction, and it converts to permanent financing once the home is complete. This reduces closing costs and limits transition risk. Construction financing can be structured for lot purchase plus build, building on land you already own, owner builder projects, or custom home contracts with licensed builders. Underwriting is more detailed than a standard purchase. Lenders evaluate credit strength, liquidity and reserves, builder credibility, budget realism, timeline, and projected appraised value upon completion. If you have not reviewed the full approval process from start to finish, begin with the Houston Buyer Guide here: https://insync.homes/details/2452/Houston_Buyer_Guide How Payments Work During Construction During the build phase, borrowers typically make interest only payments based on funds that have been disbursed. The builder submits draw requests at major milestones such as foundation, framing, mechanical systems, interior completion, and final stage. You are not paying interest on the full loan amount from day one. You are paying based on what has actually been funded. When appropriate, we structure interest reserve to stabilize cash flow during construction. Payment planning must include property taxes, insurance, potential MUD assessments, HOA dues, and the full principal and interest payment once the loan converts. Before starting a project, it is critical to understand your real buying power and full monthly exposure: https://insync.homes/details/2381/Houston_Buyer_Guide_%E2%80%93_Real_Buying_Power_vs_Pre-Approval We model the true monthly payment before you break ground. Financing After the Home Is Completed Many new construction transactions occur after the property is fully built. This is often referred to as an end loan. The builder has completed the home, and you are financing it as a standard purchase with new construction considerations. Completed new builds can involve builder inventory homes, quick move in properties, or spec homes. While the loan process resembles a traditional purchase, there are key differences: Appraisal analysis may rely heavily on recent new build comparablesBuilder incentives must be structured correctlyRate strategy must align with projected completion timingWarranty documentation and certificate of occupancy timing must be confirmed Financing a completed new build requires attention to detail, especially when builder credits or rate buydown incentives are involved. Lot Financing If you are purchasing land before building, structure matters. Options include a standalone lot loan, rolling the lot into a future construction loan, or purchasing the lot in cash and refinancing into construction later. Loan to value, carry cost, and timeline must align with your build strategy. Buying land without a financing plan creates unnecessary risk. Builder and Spec Financing For builders and investors, the underwriting conversation shifts toward project performance and capital efficiency. We structure financing for spec home construction, small infill development, lot acquisition with vertical build, and multi property sequencing. Key metrics include loan to cost, projected value at completion, liquidity, experience, and exit strategy. Spec financing requires disciplined cost control and realistic absorption assumptions. Capital is available. Structure determines whether the project performs or creates strain. Build Versus Buy Analysis Some buyers assume building is more expensive than purchasing resale. In certain Houston submarkets, building can create immediate equity, improved mechanical systems, more efficient layouts, and reduced long term maintenance. The decision should be based on total project cost, projected value, time horizon, and real monthly payment. If you are evaluating the full contract to closing process, review what happens after going under contract here: https://insync.homes/details/2452/Houston_Home_Buying_What_Happens_After_Youre_Under_Contract We run side by side comparisons so clients understand the full financial picture before committing. Who This Is For Custom home buyers in HoustonBuyers purchasing completed new buildsBuyers acquiring lots for future constructionBuilders financing spec inventoryInvestors building small residential projects While our primary market is Greater Houston, we also structure construction and new build financing throughout Texas depending on property location and loan type. Next Steps New construction and new build financing require early planning. Whether you are evaluating a lot purchase, custom build, completed inventory home, or spec opportunity, we review budget, timeline, liquidity, projected payment, and exit strategy before you commit. Construction and new build loans are not complicated. They are structured. When structured correctly, they create opportunity instead of risk.