Capital Kings LLCNew Construction Loans in Texas.The lot and the build, one loan.
Sized on total project cost and on the completed value: the lot advance funds at closing and the construction budget follows the build in inspected draws. First-time builders qualify at 85% of total project cost, and every finished project moves the leverage and the rate. We’re a broker, not a lender, so we shop your file across 400+ lenders and price it on a term sheet you can actually read.
Prefer to talk it through? Call or text Micah at (281) 636-5682.
The construction loan, in four numbers
How a construction loan is sized
First-build caps shown. The lot advance is up to 70% of the lot price at closing; the rest of the lot is your down payment. The construction budget follows the build in inspected draws, and interest is charged only on what has been drawn.
What the loan covers
Part of the lot at closing and the whole construction budget, released phase by phase as the inspector signs off. On a lot you already own, the as-is value counts as your equity and you can draw cash against it.
What you bring
The rest of the lot price, closing costs, and a verified cushion: about 15% of the budget to start the build plus six months of interest in reserves. Not tax returns, W-2s or a debt-to-income ratio.
The deal in the video, priced the way the application prices it
The deal Micah walks through in the video: a $100,000 lot, a $200,000 construction budget, a $420,000 completed value, 730 credit, first build. Total project cost $300,000.
Loan-to-completed-value 60.7%, under the 65% cap. Lot advance $55,000 at closing, $200,000 of construction funded in draws. Interest-only $527 a month on the lot advance, $2,442 when fully drawn. Proof of funds $104,650 including the kickoff and six months of interest. Priced the way the instant term sheet prices it, as of September 2026; we re-price every file against the full network before you sign.
Leverage, rate tiers and what moves them
| Builds completed | Of total cost | Of completed value | Lot advance | Rate | Origination |
|---|---|---|---|---|---|
| First build | 85% | 65% | 70% | 11.49% | 2 pts |
| 1-4 builds | 90% | 70% | 75% | 10.49% | 2 pts |
| 5+ builds | 90% | 75% | 80% | 9.99% | 2 pts |
| Broker fee | 1%, $2,000 minimum |
| Origination floor | $2,000 minimum |
| Term | 12 to 18 months, interest-only on the drawn balance |
| Draws | Released per completed, inspected phase |
| Minimum credit | 650 on the instant term sheet |
| Builder’s risk insurance | About 1% of the budget, $800 minimum, est. |
| Reserves verified | 15% of the budget plus six months of interest |
These are the tiers the instant term sheet uses, as of September 2026. We shop every construction file against the whole network before it’s signed, and your term sheet shows the exact figure.
Size your build right now
Prefilled with the deal from the video. Change any number and it re-sizes instantly on the same tiers the application uses.
Built for the ground-up investor
- First-time builders with a lot under contract and a general contractor lined up.
- Infill builders in Houston, DFW, San Antonio and Austin replacing a teardown.
- Lot owners who want the build funded on the equity in land they already hold.
- Contractors building on their own account instead of for a client.
- Flippers graduating from heavy rehab to ground-up.
- Spec builders doing one to four houses a year who want every file shopped.
Your first build, and what changes after it
Most people planning a first build assume a lender wants a portfolio of finished houses before it will fund one. It doesn’t. On a first build the loan is sized at 85% of the total project cost, capped at 65% of what the house will appraise for when it’s done, and the rest is on you: the remaining lot money at closing, the closing costs, and a verified cushion to get the build started. Finish one project and the same deal reprices at 90% of cost, 70% of value, and a point lower on the rate.
How much cash do you actually need for your first new construction project?
About 15% of the total project cost plus closing costs. Micah walks through a real term sheet for a 730 credit first-time builder: a $100,000 lot, a $200,000 build, what the cash to close and proof of funds come to, and how the numbers move after your first completed project.
- Lenders fund 85% of total project cost on a first build. You bring 15%, and it goes toward the lot at closing.
- On a $100,000 lot with a $200,000 budget that’s $45,000 down and about $60,000 cash to close with every fee in.
- Proof of funds runs higher than cash to close: the lender wants the build started and the payments covered.
- A first build is capped at 65% of the completed value from the after-completion appraisal.
- One finished build moves you to 90% of cost, 70% of value, a lower rate, and about $45,000 cash to close on the same deal.
- Short on proof of funds? Send the deal anyway. Exceptions get run through underwriting.
The instant term sheet prices new construction from 650. The tier, not the score, sets the leverage: the deal in the video is a 730 first-time builder.
On a first build you bring 15% of lot plus budget, paid toward the lot at closing, plus closing costs and the reserves below. After one finished build it drops to 10%.
The loan is the lowest of 85% of total cost, 65% of the completed appraisal, and the lot advance plus the budget. Run all three before you go under contract on the lot.
Zero completed builds is its own tier, not a rejection. Licensed contractors get credit for builds they managed with about half the lenders in the network.
The real term sheet for the deal in the video
This is the term sheet the application generates for a $100,000 lot, a $200,000 build and a $420,000 completed value at 730 credit. Every fee is on it, and every line says who gets paid: your equity, the lender, the title company, the insurer, the appraiser, or the broker. Switch to After one build to see the same deal once you have finished a project.
- Land down paymentEquity$45,000
- Appraisal feeAppraiser$550
- Prepaid interestLender$1,204
- Lender origination feeLender$5,100
- Broker feeBroker$2,550
- Closing / titleTitle co$3,596
- Property insuranceInsurer$2,000
The gold broker line is the only money Capital Kings earns. Proof of funds adds $30,000 to start the build and $14,650 of interest reserves, and that money stays in your account.
- Land down paymentEquity$30,000
- Appraisal feeAppraiser$550
- Prepaid interestLender$1,164
- Lender origination feeLender$5,400
- Broker feeBroker$2,700
- Closing / titleTitle co$3,670
- Property insuranceInsurer$2,000
One finished build moves the same deal to 90% of cost at 10.49%, so the lot down payment drops to $30,000. Short on proof of funds? Send the deal anyway. Exceptions get run through underwriting.
These are sample sheets for a made-up borrower and lot, built by the same engine that builds yours. Yours takes about two minutes and doesn’t pull your credit.
Four mistakes first-time builders make
- Going under contract on the lot before the caps are run. The completed-value appraisal caps a first build at 65%. A $420,000 finished house caps the loan at $273,000, so the lot and the budget have to fit under it before you commit.
- Treating the draws like a checking account. You fund each phase, the inspection releases it. That’s why the lender verifies a 15% kickoff cushion and why a lump-sum budget gets sent back. Itemize it by phase.
- Counting lot equity you don’t have yet. A lot you own outright is equity and the loan can fund the build with little cash at closing. A lot you’re buying is funded only up to the lot advance; the rest is your down payment.
- Skipping the builder paperwork. The construction contract, the contractor’s insurance and the permits are what let the lender approve the builder, count your experience and release draws on time. Have them ready before the appraisal is ordered.
The document list, and what isn’t on it
- Lot contract, or the deed and an as-is value if you own it.
- Plans and specs, and where the permit stands.
- Itemized construction budget with a draw schedule, not a lump sum.
- General contractor resume, insurance certificate and the construction contract.
- Builder’s risk insurance quote.
- LLC certificate of formation, EIN letter, operating agreement and ID.
- Two months of bank statements showing the reserves.
- Closing statements or permits on completed builds, if you have them. They move your tier.
Not on the list: tax returns, W-2s, pay stubs, or an employment verification.
Which loan does your project need
Where ground-up pencils in Texas
Ground-up pencils where the finished house sells for well above lot plus build: Houston infill inside and just outside the loop, the near-north and east side, DFW suburbs where teardowns clear, San Antonio’s north side and the Austin metro outside the core. The completed-value cap is the number to watch. A 65% first-build cap on a $420,000 appraisal is $273,000, so the lot and the budget have to fit under it. We size all three caps before you go under contract on the lot.
From lot to certificate of occupancy
Send the project
Lot price or value, construction budget, completed value, and how many builds you have finished. Two minutes, no credit pull, instant term sheet.
We shop it
Your project goes to the ground-up lenders in our network that fit your tier, at the highest leverage the three caps allow.
Appraisal, budget and GC review
Plans and specs set the completed value. The budget and draw schedule get reviewed, the GC gets vetted, builder’s risk binds.
Close and build
21 to 30 days typical. Lot advance at the table, draws released as phases pass inspection, interest on the drawn balance.
Texas construction loan FAQ
What is a new construction loan for investors?
How much money do I need for my first new construction project?
Can a first-time investor get a construction loan?
Do I need a general contractor, and can it be me?
How do construction draws work?
Can I use a lot I already own?
What credit score do I need for a new construction loan?
How long does a construction loan take to close, and how long do I have to build?
Before you break ground
Ready to price your Texas build?
Two minutes to an instant construction term sheet. No credit pull, every fee on the page, draws that follow the build.