Construction Loans Texas

A traditional bank construction loan typically involves a lengthy approval process, strict documentation requirements, and a draw schedule tied to formal inspections. Hard money construction loans, like those offered by New Silver, are asset-based and focus heavily on the property’s projected value and the borrower’s experience. The trade-off is a higher interest rate in exchange for speed, flexibility, and fewer bureaucratic hurdles. For builders working to a tight timeline, that trade-off is often well worth it.

Yes. New Silver lends nationally, including across Texas. Whether you’re building in Dallas, Houston, Austin, San Antonio, or a smaller market, the same loan terms apply. The key factor is the project’s numbers: its total cost, projected ARV, and the strength of the local resale market.

New Silver’s ground-up construction loans cover up to 90% of the total project cost (LTC), which can include both land and construction costs depending on the deal structure. If you already own the land, it can often be used as equity in the transaction. It’s worth discussing the specifics of your deal with a loan officer to understand exactly how the numbers work for your project.

New Silver’s online application and underwriting process is significantly faster than a traditional bank. While timelines can vary depending on the complexity of the project and how quickly documentation is submitted, the process is designed to move at the pace builders need rather than the pace banks are comfortable with.

The 18-month term covers the majority of ground-up construction projects. If your timeline shifts for any reason, it’s important to get in touch with your New Silver loan officer before the term expires to discuss your options. Planning for contingencies early is always the better approach.

New Silver’s construction loans are available to residential builders and developers. You don’t necessarily need to hold a contractor’s license, but relevant building experience and a credible project plan are important parts of the qualification picture. If you’re working with a licensed general contractor to manage the build, that can also support the application.

Yes. While selling the completed property is the most common exit strategy, building to hold as a rental is also a viable path. If that’s your plan, a DSCR loan may be the right refinancing tool once the construction loan is repaid and the property is stabilised. New Silver offers both products, so it’s possible to plan the full financing journey in one place.

p>Loan-to-ARV (after-repair value) compares the loan amount to the projected value of the completed property. New Silver lends up to 75% of ARV, meaning the total loan can’t exceed 75% of what the finished property is expected to be worth. This metric helps ensure the deal makes financial sense and that there’s enough margin in the project to cover loan repayment through a sale. You can use New Silver’s ARV calculator to estimate this figure for your project.