Houston Construction Lenders for Residential Investment Property
Are you building a residential investment property in the Houston metro area? On this page you'll find a list of private construction lenders for ground-up projects throughout Houston's urban areas. The maximum loan-to-completed value (LTCV) for most lenders is 70%. You typically need to contribute 20%-25% of the project costs and have some cash reserves. Experience is almost always required. Most lenders will require the project to be fully entitled and shovel ready. A small percentage of lenders will consider land acquisition and/or horizontal financing. The lenders listed here can fund a single home build, or a development with multiple homes. We have a separate page for lenders that offer ground-up construction financing for commercial properties.Searching...
Sorry, your search returned no results.
Park Place Finance
Nationwide Direct Private Lender for Residential Real Estate Investors
Malve Capital LLC
Fast And Easy Real Estate Loans. Closing as fast as 5 business days, subject to clear title.
Old North Capital Fund, LLC
True asset-based financing | No credit check, No appraisals, No prepay
Easy Street Capital
Direct Lender for Residential Flips and Rentals
Yieldi LLC
Direct Lender for Investment Properties - Bridge, Rehab, Construction
Rehab Financial Group
100% Financing for Rehab, Flip and Construction Projects - NO DOWN PAYMENT!
HouseMax Funding
Hard Money Loans to Fund Your Next Big Project
CR Lending
NO Credit Check, NO Appraisal / Survey, NO Prepay | 100% LTC for Fix & Flip
LendingOne
Rental, Fix & Flip, Construction & Multifamily Bridge Loans Nationwide
Finance of America Commercial
Residential Real Estate Investment Loans Made Simple
Center Street Lending
Smarter Loans for Residential Property Investors
i Fund Cities
Great F#*%ing Loans, Built By Investors For Investors
Eagle Point Lending
Asset-Based Lender for Texas Real Estate Investors
Precision Capital
We Are In The Business of "YES"
Lima One Capital
The Nation's Premier Lender for Real Estate Investors
RCN Capital
Direct Lender for Residential Fix & Flip, Long-Term Rental, Bridge Loans
Capital Fund 1, LLC
Reliable Private Money for Your Real Estate Projects
Streamline Funding
We help Real Estate Investors Grow
Texas Construction Loan Stats
According to private lending data provider, Analytics Logics, the average interest rate for fix & flip loans in Texas is 11.13%. The average loan amount is $352,499. These stats are the average of all the loans which were funded between April 1, 2023 and September 15, 2023 by the many private lenders who use Liquid Logics’ loan origination software to manage their lending operations.
Private construction loans are typically for the vertical costs of building residential properties which will be sold or rented upon completion. Some lenders will participate in the land acquisition, but the majority only provide financing once the project is shovel-ready with building permits in hand.
Texas Ground Up Construction Insights from a Local Lender
In the last 2-3 years, the state of Texas has seen a significant rise in migration from other states in the country, due to the rise in interest rates and inflation. Stephen King, an Account Executive at Easy Street Capital, states that this rise has “increased the need for residential new construction.” He also makes a point that not only are people moving their residents to Texas but large corporations are also starting to move their headquarters to Texas, adding to the increased need for ground up construction projects.
This increased migration has created a new trend in the HOA communities throughout Texas. Stephen says in the last 3-5 years investors have been purchasing large lots to build anywhere from a couple hundred homes to a couple thousand homes creating one HOA facility. He says, “instead of doing a single family, most are converting into a duplex or quadplex. So they make the most of what the land has there.”
Popular Markets for Texas Ground Up Construction Projects to Consider
According to Easy Street Capital, the cities that have seen the most influx in residential new construction in the last 2-3 years are Houston, Dallas and Austin. Stephen states that in addition to the larger metropolitan areas in Texas, they have also seen an increase in construction near the coastal areas such as Galveston and Corpus Christi.
Easy Street Capital, LLC is a private real estate lender headquartered in Austin, Texas serving real estate investors around the country. They offer financing for ground-up construction, fix and flip, and cash flow investment properties. For their ground up construction financing their max LTC is 82.5% with still abiding at 65% of the after completion value. They have a 48 hour draw process and only do vertical financing, meaning it has to be infield in a metro area and only require one ground-up construction project completed in the last 2 to 3 years to qualify.
Funded Ground-Up Construction Loans in Houston
I Fund Cities, an alternative lending platform, funded an $854,167 senior lien position ground-up construction loan for 3 townhomes in Houston, TX. We funded 100% of the $825,000 construction budget. The completed value was estimated at $1,436,000 so our loan-to-completed value was 58%. This new construction Borrower had existing debt on their property and they wanted to get financing quickly to keep their pipeline moving at their own pace. By working directly with i Fund Cities, this Borrower had access to the people intimately involved in his loan process, which allowed him to get the answers he needed quickly. i Fund Cities was able to help this Borrower by providing a loan that considered the value-add already done on the property. This included doing the re-platting and getting the approvals to build 3 townhomes, as opposed to building just one single-family home. We moved quickly and efficiently for this Borrower, closing with the same terms we agreed upon from day one. We even covered a portion of the closing costs! The Borrower plans to sell the property upon completion. The loan term was set at 12 months. This ground-up construction loan was funded in November 2023.