Construction Loans
Construction loans provide short-term financing for building new homes or major renovations, typically lasting 6-12 months during the construction phase.
Construction financing runs on a different rhythm from a purchase. Funds release in stages as the build progresses, inspections gate each draw, and the loan converts to permanent financing once the home is finished. So the timeline is governed by the builder’s schedule as much as by yours.
That makes two things matter more than usual. First, the builder — their contract, their track record, their ability to hold a schedule. Second, your contingency planning, because construction costs move and a build that runs long or over budget puts pressure on financing arranged around the original figures.
We work through the draw schedule, the conversion terms and what happens if the build slips, before anything is committed. Understanding the mechanics at the start is what keeps a construction loan from becoming stressful halfway through.
Draw-Schedule Discipline
Funding stages aligned to your builder’s real timeline.
Single-Close Options
Construction-to-permanent structures that save a second closing.
Texas Licensed
Ground-up lending across Texas, NMLS #2692844.
How do construction loans compare to buying an existing home?
| Construction loan | Traditional purchase | |
|---|---|---|
| What it funds | Building a home from the ground up | A home that already exists |
| Disbursement | Staged draws as construction progresses | One closing, one funding |
| Inspections | Progress inspections at each stage | Standard appraisal |
| Conversion | Often converts to permanent financing at completion | Permanent from day one |
| Best fit | Custom builds and land owners | Move-in-ready buyers |
Program guidelines vary by scenario. Contact us for options based on your situation.
Frequently Asked Questions
What is a Construction Loan program?
Construction loans provide short-term financing for building new homes or major renovations, typically lasting 6-12 months during the construction phase.
How do I apply for Construction Loans with TPRG Capital?
Request a free quote or apply online, then a TPRG Capital loan officer will review your goals and recommend the best construction loans option for your situation. Call (972) 679-1613 to get started.
How do construction loan draws work?
Funds are released in stages — foundation, framing, mechanicals, finish — with an inspection verifying each phase before the next draw. You typically pay interest only on the amount drawn during construction.
Do I need to own the land first?
Not necessarily. Some programs fold the land purchase into the construction loan; if you already own the lot, its equity can often count toward your investment in the project.
What happens when construction finishes?
Most borrowers convert to permanent financing. A construction-to-permanent structure handles this in a single closing, saving a second round of closing costs — we will map the right structure before you break ground.
Can investors use construction loans?
Yes. Builders and investors use construction financing for spec homes and build-to-rent projects. Pair it with a DSCR exit strategy and the completed rental can refinance based on its own income.
Ready to Explore Construction Loans?
Get a free, no-obligation quote today.
Secure & Confidential • Quick Process • No Obligation
Get Started With Construction Loans
Building a home is a sequence of funded milestones. We structure the draw schedule around your builder’s contract so money is ready exactly when each phase begins.
Why borrowers choose Construction Loans
We review your plans, budget, and builder before anything else — because construction lending underwrites the project as much as the borrower.
Through the build, your loan officer coordinates inspections and draw releases directly with your builder, keeping the project funded and the paperwork off your plate.
From Frisco, we finance custom builds and owner-lot construction across Texas under NMLS #2692844, with conversion to permanent financing planned from day one.
Have plans and a builder bid in hand? Bring both — that is everything we need to frame your construction financing.
For consumer guidance on construction financing basics, see the CFPB’s lending answers. When you are ready, request your free quote today.
This content is for general information only and is not a commitment to lend or an offer of specific terms. Program guidelines, qualification requirements, and terms are subject to change without notice. All loans are subject to credit approval and are not guaranteed. TPRG Capital is a mortgage broker and does not make loans. TPRG Capital, NMLS #2692844. Jimmy D. Williams, Residential Mortgage Loan Originator, NMLS #1860818. Equal Housing Opportunity. Licensed in Texas.