Construction Home Loans in Austin, TX

It varies. Some specialized programs require a small contribution, while conventional and jumbo construction loans often need 10% to 20% or more. Land you own can sometimes count.

Usually interest-only payments on the amount drawn so far.

Overruns are typically your responsibility, so keep a cash cushion and avoid upgrades not in the approved budget.

Most lenders require a licensed, approved builder. Owner-builder loans are limited and harder to find.

A construction-to-permanent loan funds the build in stages, then converts to a regular mortgage when the home is finished. You close once, so there’s one set of closing costs. During construction you usually pay interest only on the amount drawn. The builder is paid through draws after inspections confirm each stage is complete.

Often, yes. If you own the lot, its equity can count toward the down payment on a construction loan. Lenders look at what you still owe on the land and when you bought it. If you bought it recently, the lender may use the price you paid rather than a new appraisal.

Yes. Self-employed borrowers usually qualify with two years of tax returns, the same as for a purchase. If write-offs lower your income too much, some lenders offer construction financing using bank statements or other non-QM documentation. Options are narrower, so comparing lenders matters. CapFi Lending works with more than 50 wholesale lenders.

Yes. Before approving a construction loan, the lender reviews your builder’s license, insurance, experience and contract. Once the loan closes, the lender pays the builder through scheduled draws after inspections. CapFi Lending coordinates that review with your builder from the start. Read more on working with Central Texas builders.

You can, but you don’t have to. Builders sometimes offer incentives, such as a seller-paid rate buydown or closing cost credits, for using their lender. Compare the full offer, including rate, APR and fees, against outside quotes. CapFi Lending can price the same loan across more than 50 wholesale lenders so you can compare.

If a builder sells you a finished or spec home, you use a regular purchase mortgage and close when the home is done. A construction loan is for building on your own lot with your own builder and plans. Builder-sold homes may include incentives, so compare them with options from outside lenders.