One-time-close construction
Eligibility and structure depend on the complete borrower, property and transaction profile.
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Conventional
Conventional Construction Loans
Eligible construction financing for a Texas owner-occupied residence under an approved lender and builder program.
Texas consumer-purpose residential lending
Who it is built for
Start with the actual use case.
Qualified Texas borrowers building a primary residence or eligible second home.
Key decision
Builder approval, plans, appraisal, land equity, budget, contingency and draw structure must align.
Land plus build
Eligibility and structure depend on the complete borrower, property and transaction profile.
Custom-home construction
Eligibility and structure depend on the complete borrower, property and transaction profile.
The direct answer
How this program works.
Conventional construction-to-permanent financing requires an eligible project and an approved lender process, not just eligibility for a finished-home conventional loan.
Compare the alternative
Compare separate construction/permanent closings with an available conversion structure.
Illustrative example
Include land, site work, construction, soft costs and contingency in the budget. An advertised house build price may omit several of these.
Important boundaries
- Lender construction availability and draw administration must be confirmed.
- A future completed value is not the current land value.
Source checked October 9, 2026: Fannie Mae — Selling Guide ↗. Published guidance is educational; lender examples do not establish RedZone availability.
Program notice
Offered only when an approved lender and eligible project structure are available.
General structure
What gets reviewed.
- Texas consumer-purpose residential transaction
- Fannie Mae, Freddie Mac or approved lender eligibility
- Documented income, assets, credit and reserves
- Eligible occupancy, property type and appraisal
Potential advantages
Where it can work.
- Broad purchase, refinance, second-home and renovation uses
- Multiple down-payment and mortgage-insurance structures may be compared
- May offer flexibility for strong credit and complex property goals
Limitations
Where it can break.
- Automated underwriting and lender overlays can affect approval
- Conforming limits, occupancy and property rules apply
- Texas cash-out and home-equity transactions require a separate legal framework
First-pass file map
Bring enough information to get a real answer.
The point is not to collect every document before a conversation. It is to avoid pricing a fantasy version of the transaction.
- 01Land/title and plans
- 02Builder contract and budget
- 03Income, assets and completed-value appraisal
Program FAQs
Direct answers, clean qualifiers.
Who is Conventional Construction Loans designed for?
Qualified Texas borrowers building a primary residence or eligible second home.
What can Conventional Construction Loans be used for?
Conventional Construction Loans may be considered for construction, purchase, subject to the property, borrower, lender and jurisdiction.
What should I prepare for a Conventional Construction Loans review?
A useful first review commonly includes land/title and plans, builder contract and budget, income, assets and completed-value appraisal. The final list depends on the selected lender and transaction.
What is the most important decision with Conventional Construction Loans?
Builder approval, plans, appraisal, land equity, budget, contingency and draw structure must align.
Is Conventional Construction Loans automatically available if I meet general guidelines?
No. Every transaction remains subject to credit, property, documentation, lender, program and jurisdiction approval. Published information is educational, not a commitment to lend.
Related financing lanes
Compare before you commit.
Property and jurisdiction first
Find out whether this lane fits the real transaction.
Content updated October 9, 2026 · Source checks do not constitute lending/compliance approval · Product availability and guidelines require transaction-specific confirmation · This is not a commitment to lend.