Recently Funded Ground-Up Construction Loan In The Colony, Texas

Loan Scenario:

This ground-up construction loan covers a new modern single-family home in The Colony, Texas. Specifically, the borrower is a first-time builder who acquired the lot for $180,000 with a construction budget of $259,267. American Heritage Lending provided $363,840 in funding, set at 82.83% LTC and 64.40% LTARV. Upon completion, the home is expected to reach an appraised value of $565,000. Notably, this loan is a True Zero Point Loan with a 12-month interest-only term.

The build covers every phase of new construction. First, early work includes plans, permits, surveys, grading, sitework, and water and sewer connections. Then, structural work covers foundation, framing, siding, brick and masonry, roofing, and gutters. Next, all major systems are put in place, including plumbing, electrical, and HVAC. From there, interior work covers drywall, paint, trim, doors, cabinets, counters, flooring, tile, lighting, hardware, and appliances. Finally, exterior work includes flatwork, doors, windows, a garage door, fencing, and yard work. Also, the budget includes a backup reserve and cleanup costs.

The Colony sits within the Dallas-Fort Worth area and benefits from steady buyer demand and strong growth. Specifically, new homes at this price point compete well with existing supply. As a result, modern builds attract buyers relocating from higher-cost areas across Texas. Consequently, a finished home at $565,000 is well-placed for a strong market response.

Overall, this deal shows how American Heritage Lending supports first-time builders with clear, low-cost loan structures. Specifically, AHL provided 82.83% LTC funding with no discount points, cutting extra upfront costs. As a result, the borrower moves from land to a finished home without added strain. Also, the 12-month interest-only term gives the time needed to complete the build with confidence.