Ground-Up Construction Loans in Texas
Texas leads the country in residential construction permits. Houston, Dallas-Fort Worth, Austin, and San Antonio all have active investor build-to-rent and build-to-sell pipelines. Permitting is generally faster than coastal states. No state income tax preserves builder margin.
Top Texas markets for ground-up construction
- Houston: Highest TX permit volume; broad infill and BTR opportunity.
- Dallas-Fort Worth: Suburban BTR communities at scale.
- Austin: Premium infill margins; permitting tighter than Houston/DFW.
- San Antonio: Lower entry; growing investor builder activity.
Texas quick facts
- •Highest US permit volume
- •No state income tax
- •Houston/DFW 30-45 day permitting
- •Austin permitting 60-90+ days
Texas Ground-Up Construction FAQs
TX permitting timeline for residential builds?
Houston and DFW: 30-45 days typical. Austin: 60-90+ days due to environmental and tree-preservation review. San Antonio: 30-45 days.
TX-specific construction lender requirements?
Most TX-active lenders require licensed GC (no state license but most cities require). Stormwater management plans required for projects over a half-acre.
General ground-up construction questions
Can I include the land in the loan?
Yes if the land was acquired within the last 6–12 months. Older land is usually appraised separately and capped at as-is value plus construction budget for total project cost.
Do I need a licensed general contractor?
Most ground-up construction programs require a licensed GC. A small number of programs allow owner-builder if you have prior completed projects, but pricing is higher and LTV lower.
How do construction draws work?
A draw schedule is set at closing, usually tied to completed line items (foundation, framing, MEP rough-in, drywall, finish, certificate of occupancy). An inspector verifies each draw before funds release.
Got a Texas ground-up construction scenario?
Tell us the deal - we'll match you with the right Texas lender and come back with current pricing.