Loan Scenario:

Taking on a ground-up build is ambitious for any investor, and it takes real conviction to do it without prior construction experience — but this borrower, a franchisee with a clear business plan and a home they had owned for three years, was ready. American Heritage Lending structured a construction loan to fund both the lot purchase and the full vertical build of a detached PUD in Oak Leaf, financing everything from permits and plans to foundation, framing, roofing, and the complete mechanical systems. With a $180,000 land price and a construction budget of $728,272, the $790,354 loan was set at 90% loan-to-cost while landing at a remarkably conservative 49.96% loan-to-after-construction-value against a projected $1,582,000 finished value. That wide margin, paired with a documented scope and a clear exit through sale, gave our team the confidence to support a first-time builder on a project of real scale. The 12-month interest-only term keeps carrying costs manageable while the home takes shape.

Oak Leaf is one of the quieter, more affluent enclaves in Ellis County, just south of Dallas, where large lots and custom homes appeal to buyers migrating out from the metro core in search of space. The broader DFW area continues to see some of the strongest population and job growth in the country, and finished new construction in desirable pockets like this one tends to find a ready market. Building where demand is durable is what turns an ambitious plan into a fundable one. We were proud to help this investor break ground in Texas. Considering a build of your own? Let’s talk financing.

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