Recently Funded Ground-Up Construction Loan In Dallas, Texas

Loan Scenario:

This ground-up construction project involves a new modern single-family home in Dallas, Texas. Specifically, the borrower is a first-time builder who refinanced land valued at $85,000. In addition, they are completing a full new build with a construction budget of $282,899. As a result, American Heritage Lending provided $324,809 in financing. Therefore, the loan is structured at 88.29% Loan-to-Cost (LTC) and 67.67% Loan-to-After Construction Value (LTARV). Ultimately, the property is projected to reach an After Construction Value of $480,000.

Notably, this project was financed as a True Zero Point Loan. Because of this, the first-time builder accessed high-leverage capital without paying upfront discount points. Additionally, the loan is structured as a 12-month interest-only facility. As a result, the borrower has flexibility to manage costs throughout the build.

The project consists of a full ground-up build. First, work includes site prep such as water and sewer taps, tree removal, and permits. Then, the build moves through foundation, framing, and roofing. Next, the scope covers plumbing, electrical, and HVAC. Furthermore, exterior work includes brick, siding, flatwork, fencing, and landscaping. Finally, interior finishes include drywall, paint, cabinets, counters, flooring, tile, trim, and appliances. Also, a backup reserve is built in for added flexibility.

Dallas continues to see strong demand for new homes, especially in growing areas. Consequently, modern homes benefit from limited supply and steady buyer interest. Therefore, finished projects are well-positioned for resale.

Overall, this project shows how American Heritage Lending supports first-time builders. By offering 88.29% LTC funding with no discount points, AHL helps new builders move from land to finished home without high upfront costs.