Loan Scenario:

A first-time investor with a clear vision for a two-unit new build in Houston turned to American Heritage Lending to finance the project from the ground up. Even without a track record of completed projects, the borrower brought a well-defined scope of work and a sound exit strategy: complete the build and sell into a healthy Houston market. We looked at the strength of the deal itself and structured a construction loan that carried the project from land through completion.

The land was acquired at $45,000 against a construction budget of $279,000 and an after-construction value of $408,000. We funded $258,529 on a 12-month interest-only term, landing at 79.79% loan-to-cost and 63.36% loan-to-after-repair-value, leverage that gave the borrower room to execute while protecting the project with a comfortable equity cushion. The scope covered the full build: foundation, framing, windows and doors, insulation, rough plumbing, and a complete fixture package.

Houston remains one of the country’s most active construction and infill markets, powered by population growth, a diversified job base, and persistent demand for new housing across its sprawling neighborhoods. Two-unit new construction is especially well-suited to the city’s blend of owner-occupants and renters, giving builders multiple exit paths. American Heritage Lending is glad to back ambitious Texas builders, even first-timers, when the numbers and the plan line up. If you have a ground-up project of your own, start the conversation about financing today.

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