Houston, TX · New Construction

Ground-Up Construction loans in Houston, TX

The short answer

TSG Capital arranges new construction loans in Houston, TX — business-purpose financing on non-owner-occupied investment property, placed through our network of lenders rather than lent directly. TSG Capital arranges ground-up construction loans for builders and investor-developers — business-purpose financing that funds a project from the lot through to certificate of occupancy. A deep, liquid investor market with strong rental demand and steady flip volume across a sprawling metro. Request a no-obligation term sheet to see terms for your Houston deal.

New Construction financing for Houston investors

The Houston metro spans Harris, Fort Bend, and Montgomery counties — no zoning, a diverse job base, and neighborhoods at every price point make it one of the most active business-purpose lending markets in the country.

A ground-up construction loan funds new vertical construction — infill homes, spec builds, small multifamily, and townhome projects — from raw or entitled land through completion. Unlike a rehab loan, it finances the entire build, so the money is released in draws tied to construction milestones: foundation, framing, mechanicals, drywall, and final. You draw as you build and pay interest only on funds deployed, which keeps carrying cost down during the dirt-work and framing stages when nothing is generating income.

Leverage is usually described against cost and against value. Loan-to-cost (LTC) measures the loan against land plus hard and soft construction costs — lenders in our network often go up to roughly 80–85% LTC, sometimes funding 100% of vertical construction when the borrower brings the land or land equity. Loan-to-completed-value (or loan-to-ARV) caps the total facility against the finished appraised value, commonly in the 65–70% range, which is the lender's ultimate guardrail. A realistic budget, a licensed builder, and a defensible completed value are the three things that get a construction deal approved.

Typical terms

Ranges below are typical across our lender network for new construction loans — not a quote or a guarantee. Availability and terms vary by lender and by property location.

Leverage

Often up to ~80–85% LTC (sometimes 100% of vertical); capped near 65–70% of completed value

Term

12–24 months, interest-only, draw-based

Rate

Experience- and leverage-dependent — quoted as a range on your term sheet

Points

Origination points typically 2–4, deal-dependent

Time to close

Longer than a rehab loan; budget, builder, and plans drive timing

Is this structure a fit for your Houston deal?

Best fit	Typical exit	Lender focuses on
New infill or spec construction	Sale or permanent refinance	Budget, builder, plans, completed value

Who we work with in Houston

Builders and investor-developers doing infill and spec construction
Operators bringing a lot (or lot equity) who need vertical construction capital
Small multifamily and townhome developers who need draw-based funding
Entities with a licensed builder, a real budget, and a defensible completed value

What to have ready

Send a complete first-look package so the request can be matched without guessing at the property, budget, or exit.

Property address and purchase contract

Entity documents and signer identification

Requested loan amount and intended exit

Current property photos and insurance contact

Plans, permits, budget, and draw schedule

Builder résumé, license, and completed-project history

Houston new construction loan FAQ

Do you arrange new construction loans in Houston, TX?+

Yes. TSG Capital arranges new construction loans on non-owner-occupied investment property in Houston, TX, placing your deal through our network of business-purpose lenders. Submit the property and your numbers for a no-obligation term sheet.

What is a ground-up construction loan?+

Business-purpose financing that funds new construction from the land through completion, released in draws tied to construction milestones. You pay interest only on the funds you have drawn.

How much of construction cost will a lender fund?+

Lenders in our network often fund up to roughly 80–85% of total cost (LTC) and sometimes 100% of the vertical construction budget when the borrower brings the land, with the total capped against completed value.

How do construction draws work?+

Funds are released in stages as work is completed and inspected — commonly at foundation, framing, mechanicals, drywall, and final. This keeps your interest cost tied to money you have actually deployed.

Do I need building experience?+

It helps with pricing and leverage, and most lenders require a licensed general contractor on the project. First-time builders can often still qualify with a strong team, a realistic budget, and more equity.