Texas Construction Loans: How It All Works
Construction loans in Texas is growing from new home construction, commercial building, and renovation projects everywhere. Financing will make these ideas a reality. Without the right loan, costs can spiral out of control.
We feel your pain, which is why LBC Capital provides the fastest, most flexible construction loans available to get you back on schedule. Our objective is simple-provide financing to meet your needs, not vice-versa.
Whether building from scratch or expanding your current operations, we’re with you every step of the way.
Types of Construction Loans Available
Construction loans are not one-size-fits-all. Each project requires a certain financing solution. Here are the most common available in Texas:
- Construction-to-Permanent Loans
This loan starts as a construction loan. Upon completion of the project, it automatically converts into a regular mortgage. It is ideal for long-term home builders.
- Stand-Alone Construction Loans
These loans finance the construction phase alone. At the completion of the project, you will have to take up another mortgage to refinance. They are more flexible but require extra planning.
- Owner-Builder Loans
If you’re a licensed contractor managing your own project, this loan is for you. It’s less common but can save costs when handled correctly.
At LBC Capital, we will fit loans to your project scope. We know no two construction projects are ever the same. That is why we offer options to fit your timeline and budget.
Benefits of Construction Loans from LBC Capital
Tailored Financing Options
At LBC Capital, we understand that each construction project is different. We take the time to tailor a loan to match your specific needs. Competitive interest rates to keep your project in your budget, combined with flexible terms to match your construction schedule, will help round out what we can offer. Our fast approval process ensures you won’t face delays and that you’ll be able to keep your project on schedule. For qualified borrowers, options featuring minimal down payments further give you the option to free up funds for where they’re most needed.
A Partner You Can Trust
Working with LBC Capital means partnering with a lender that understands the Texas market. Our personalized approach means you won’t be treated like just another application. We listen to your goals and work with you to create the best financing solution. Our experience with projects across major Texas cities allows us to anticipate potential issues and provide solutions before they become problems. From Austin to Dallas and Houston, trust in our experience and dedication to your success.
Full Spectrum of Support in the Process
Construction loans require the most management, and we are there for you through it all. Our team coordinates the process of loan draw to make certain that funds are available in due time and at the right moment when the project requires it. We work together with you and your contractors to meet key milestones along the way so there aren’t any surprises. We are happy to help you through continuous support from consultation to the last payment of the loan.
A Smooth and Efficient Application Process
It doesn’t have to be a headache when applying for a construction loan. At LBC Capital, we make this process simple. We check your credit, review your plans for the project, and details about the contractor to get an idea of the scope of the whole project. By focusing on these key areas, we could quickly provide the pre-approval required for our credit program. Our streamlined process minimizes paperwork and reduces waiting time, enabling you to focus on building your dream project.
Stay on Track with Loan Draws
Construction loans work a little differently compared to traditional mortgages. Instead, the entire loan amount is not upfront; instead, it is disbursed gradually through loan draws. Each loan draw corresponds to a particular milestone of the project, like laying the foundation or framing. It’s super important to be organized and ask for draws at the right time so that the construction doesn’t get delayed. Our team at LBC Capital will guide you through this process smoothly to ensure the funds are there when you need them.
Another good way to prevent over-budget issues is by regular monitoring. Regular involvement with the project enables you to detect the problem well in advance, allowing you to take corrective action before things get worse. We’re here to offer advice and provide financial guidance should any problems occur.
Common Mistakes to Avoid
Some building projects don’t go very well because of poor planning, delays, or underestimating the costs involved. Builders that cut corners in budgeting or skip important inspections often have costly problems later. By preparing in advance and taking advantage of a qualified professional’s experience, you can greatly reduce these risks. At LBC Capital, we help our clients navigate these challenges by providing expert advice and support from start to finish.
Another common mistake is not keeping your lender informed on a regular basis. Construction loans are fluid, and things change in a moment’s notice. Keeping us current with any changes to your project plan keeps us flexible and responsive to your needs.
Building with Confidence Through LBC Capital
The choice of the right lender will be among those big decisions you’ll ever make regarding your project. At LBC Capital, we provide a lot more than just financing. We offer a relationship-one rooted in trust, experience, and commitment to your success. We will guide you in finishing the project on schedule, within the budget, with peace of mind.
If you’re ready to take the next step in your construction journey, contact us today. Let us help you build smarter, faster, and stronger in the great state of Texas.