Recently Funded Ground-Up Construction Loan In Houston, Texas

Loan Scenario:

This ground-up construction loan a new single-family home in Houston, Texas. In detail, the first-time builder bought the lot for $365,000 and plans a full new build with a budget of $794,200. As a result, American Heritage Lending provided $1,031,450 in funding at 89% LTC and 64.47% LTARV. Also, the finished home has a projected After Build Value of $1,600,000. In addition, the loan is set up as a 12-month interest-only term, giving the borrower room to manage the build.

The project covers a full ground-up build of a modern detached home. First, work begins with site prep and surveys. Then, the build moves into the base and framing. Next, roofing and outside walls go in with brick, windows, and doors. From there, all major systems are added, such as HVAC, wiring, and plumbing. Also, inside finishes include drywall, floors, tile, paint, and trim. In addition, the home gets cabinets, counters, and a fireplace. Finally, the project wraps with lighting, yard work, a pool, fencing, and walkways.

Houston continues to lead Texas in new home permit volume. In particular, steady growth and a diverse job base in energy, healthcare, and trade drive demand. As a result, new builds in well-known Houston areas draw strong interest from buyers seeking modern homes.

Overall, this project shows how American Heritage Lending supports first-time builders on large-scale new builds. In particular, AHL provided near-90% LTC funding on a 12-month interest-only term. Because of this, the borrower gained access to high-leverage capital while keeping the build on track.