Champions Mortgage provides construction loans in Houston for building your dream home from the ground up. Our one-time close construction loan programs combine land purchase and home construction financing into single transactions. Lock your interest rate before you start, convert to a permanent mortgage when building is complete. Skip two separate closings and one set of closing costs. Get competitive rates, flexible loan options, and expert guidance throughout your home construction project in Houston, TX.
Get competitive rates, flexible terms, and expert guidance throughout the construction process.
Building a home in Houston gives you control over every detail when you can’t find existing residence options that meet your needs. Whether you’re building in Katy, Sugar Land, The Woodlands, or central Houston neighborhoods, Champions has construction financing programs to help you construct your custom new home in the Houston area.
Qualified borrowers can finance 100% of land and construction costs with approved credit. Build without tying up cash in down payments. Save your money for upgrades and finishes. Loans subject to credit approval and borrower qualification requirements. Ask your loan officer about eligibility criteria for your specific situation.
Construction financing structured properly doesn’t require mortgage insurance premiums. Keep more money in your budget for your construction project. The lender evaluates the completed home value, not just land cost, when determining loan to value ratios.
Construction loan programs through Champions offer competitive rates compared to traditional construction financing. Lock your permanent mortgage rate during construction so you know your final payment before completion. Fixed-rate mortgage options available for predictable long-term payments.
Construction financing works with credit scores from 620+. Recent credit issues? We evaluate the full picture. Strong income and acceptable debt-to-income ratio can offset lower credit score numbers. All loans subject to credit approval and lender requirements.
Pay interest-only payments during construction. Your mortgage team sets up a draw schedule based on construction milestones. Each inspection triggers the next draw. Full principal and payment amounts start when construction reaches completion and you move in.
Building a home in Houston requires careful planning. Here’s how it works: you buy the land (or use land you own), hire a builder, secure construction financing, and the Mortgage lender releases funds in stages as construction progresses. The typical build takes 6-8 months from breaking ground to completion. Champions streamlines this with one-time close construction loans that convert to your permanent financing when the home is finished.
Before you contact us, know roughly what you want to spend and how much time you have. Construction costs in Texas run $150-$300+ per square foot depending on location, finishes, and builder. A 2,500 square foot home costs $375,000-$750,000+ to build. Add land costs—anywhere from $50,000 for rural acreage to $200,000+ for prime suburban lots. Your builder provides detailed cost estimates. The lender orders an appraisal based on plans and specifications. This “subject-to-completion” appraisal determines how much you can borrow. Construction takes 6-12 months typically. Weather, materials availability, and permitting affect timelines. Plan realistically.
The bank’s lending team works with you and your builder throughout. Inspections happen at key milestones. The construction phase ends when you receive your certificate of occupancy. Your one-time close loan converts to your permanent mortgage and you make your first full payment.
Construction loans require stronger qualification than traditional mortgage loans because the lender takes more risk. Here’s what you need:
Credit Score Requirements: Minimum 620-640 for most construction loan programs. Some lenders require 680+ for one-time close construction loans. Higher scores get better loan rates and terms.
Down Payment: Expect 10-20% down on total project cost (land plus construction). Some programs offer lower down payments with excellent credit. Zero down options exist for qualified borrowers but require strong income and credit approval.
Income Verification: You’ll provide 2 years of tax returns, recent pay stubs, and bank statements. Self-employed borrowers need business tax returns. Lenders verify you can afford construction payments plus your current housing costs during the build.
Debt-to-Income Ratio: Most lenders cap DTI at 43-45%. They calculate your payment based on the completed home’s permanent mortgage, not just construction interest. Lower DTI improves approval odds.
Construction Plans: Complete architectural plans and specifications required. The lender and appraiser need detailed drawings showing square footage, materials, and finishes. Generic plans work if customized for your lot.
Champions offers multiple construction loan programs. Choose the option that fits your situation.
The most popular construction financing option. You close once, lock your interest rate, and the loan automatically converts to permanent financing when construction is completed. No second closing costs or requalification.
Similar to one-time close but structured with more flexibility. During construction, you pay interest only on funds drawn. Upon completion, the loan converts to a conventional or other permanent loan type with principal and payment amounts. Your permanent financing terms are set when you close.
Finance your land purchase first, then add construction financing later. This two-loan structure works when you’re not ready to build immediately. Buy the lot now, start construction when you’re ready. The lot loan converts or gets paid off when construction financing closes.
Short-term construction loan (12-18 months) that covers only the building phase. When construction is completed, you refinance into permanent financing. This means two closings and two sets of closing costs.
FHA offers construction-to-permanent programs with down payments as low as 3.5%. These help first-time builders access home construction financing with less cash required. Builder must meet FHA requirements.
Finance both land purchase and construction simultaneously. The lender evaluates total project cost and provides one loan covering both. You pay interest only on the land portion until construction draws begin.
We make the construction loan application and lending process as simple as possible:
Contact Champions to discuss your Houston construction project. We’ll review your credit, income, and down payment to determine how much you can finance. Pre-qualification takes 1-2 days. You’ll know your budget before you shop for land or finalize builder contracts.
Complete the full application process once you have construction plans and a builder contract. Provide tax returns, pay stubs, bank statements, and construction specifications. Your loan officer submits everything to underwriting for approval.
While your loan processes, work with your Houston builder to finalize every detail. The appraiser needs complete specifications to assess and evaluate value. Changes later can delay funding. Get everything in writing.
After underwriting approves your construction financing and the appraisal confirms value, you’re ready to close. Sign documents, pay closing costs and down payment, and receive your construction loan. The lender sets up your draw schedule and inspection process. Your builder can start immediately.
Champions Lending LLC dba Champions Mortgage
Your Trusted Mortgage Partner for Home Loans.
