Houston and Austin Hard Money Construction Loans

Loans Based on ARV

Our hard money construction loans are based on the final, as-built value of the property and we can often lend up to 70% LTV.

We do Land Loans

LCI also provides land loans on buildable urban land, and if you already own land, we can refinance with a construction loan.

In addition to funding land purchases we also offer flexible and competitive construction funding to finance your project from beginning to end. Like our rehab loans, our construction loans are based on the final market value of the development and are tailored to your budget and timeline. Funds are released in construction draws throughout the project, and we work with you to develop a marketable end product.

Some construction projects can even qualify for a construction line of credit in which interest is only paid on the amount drawn. Please contact us for more details on our construction line of credit program and how to qualify.

How Our Hard Money Construction Loans Work

  • No up-front fees! (Unless appraisal is required)
  • Interest rates starting at 12%
  • 3 – 4 point origination fee
  • $350 document preparation fee
  • $399 processing fee
  • No prepayment penalties after 4 months
  • Loan term tailored to length of project
  • Interest-only monthly payments
  • 70% maximum loan to value (LTV)
  • $250 draw fees

Construction Loan FAQ

What is the difference between your construction loans and your rehab loans?

Our construction and rehab loans are very similar. We require full budgets and plans for both and we manage draws in the same way. The difference is the terms. The interest rate is higher for construction loans because servicing them is more time consuming.

At what stage in my project can I get a construction loan?

We will not close on a construction loan until the project has been permitted by the city or municipality it is in. But, we can fund land purchase or refinance if necessary. When we do this, we will either add the construction loan as a 2nd lien to our 1st lien land loan, or we will completely refinance the land loan with the construction loan.

Will you lend on rural land?

In general, no. This is because it is often difficult to value rural land due to lack of sold comps. However we will consider rural land loans at very low LTVs and with a full commercial appraisal.

Will you lend on commercial developments?

No, we only lend on residential and multifamily construction projects.

What is your lending area for construction loans?

Currently we are only providing construction loans in Austin and Houston.

How do you vet construction projects?

Since we are asset-based lenders we mostly care about the current and future values of the property. We must also approve your plans and budget prior to closing. We do run credit and background though. Certain credit and background issues can affect our ability to lend to you. We also require some comparable experience for our construction loans. For more specifics about our requirements and vetting process, please contact us.

Can I GC my project myself?

Depending on your level of experience we may require you to hire a dedicated general contractor or project manager. This requirement is waved for experienced builders.

Have more questions? Please contact us or give us a call and we’ll be happy to help!