New Construction Loan Details

Longhorn makes construction loans based on the as-complete value and the total costs of the project. We offer funding for the acquisition of land and construction of the project.

Loan Fees
  • Interest Rates starting at 12.99% (interest-only payments)
  • As low as 3.49% origination (depends on deal and location)
  • Appraisal Fee: $500 on average (varies by market and turnaround time needed)
  • Loan Documents Starting at: $685
  • Loan Admin Fee: $650
  • Credit Report Fee: $80 ($120for Joint)
  • Flood Certificate Fee: $15
  • Monthly Servicing Fee: $15
Loan Terms
  • A mortgagee’s title policy is required.
  • A Builder’s Risk insurance policy is required on all loans for 12 months.
  • Up to 70% of the As-Complete Value (excluding points and fees), not to exceed 90% of cost
  • 9 month term
  • 9 month optional extension (extension fees may apply)
Borrower Criteria
  • Minimum Median Credit Score of 600
  • Minimum of 25% of project cost in reserves in a Checking, Savings, IRA and/or 401(k) account.
  • Land equity may be applied to reserve requirement.
  • Must provide details on completion of new construction projects or relevant experience.
  • No Recent Bankruptcy or Foreclosures (subject to review by Longhorn)
Property Criteria
  • First Liens Only
  • Single-family, 2-4 unit, townhomes (no condominiums or manufactured homes).
  • Our loans are made on the As-Complete Value
  • Appraisals must be ordered by Longhorn and performed by a third-party appraiser.
  • Properties should be located in or around suburban and/or major metropolitan areas: Dallas, Fort Worth, Houston, Austin, San Antonio, El Paso, St. Louis, Kansas City, Indianapolis, Charlotte, Greensboro/Winston-Salem, Raleigh/Durham, Nashville, Chattanooga, Knoxville, Huntsville, and Birmingham etc…
  • Longhorn reserves the right to adjust advance rate requirements as deemed necessary.
Appraisals / Insurance
  • All appraisals will be based on After-Repaired As-Complete Value
  • Appraisals will only be ordered by Longhorn Investments

Borrower MUST provide a minimum 9-month insurance policy to be paid in full at closing. Borrower's insurance agent should provide a certificate of insurance or evidence of insurance, including invoice, to our processing department prior to closing.

  • Insurance premiums are to be paid in full at closing. NO EXCEPTIONS.
  • A builder's risk policy is required on all construction loans.
  • Replacement cost coverage is required.
  • The lender must be named as loss payee and additional insured.

Order your insurance early! Delay in providing insurance coverage can delay the closing of your loan!

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Client Testimonial

I just closed my second deal with longhorn. Both of my deals were funded in just days! The customer service is great and everyone that helped me get to the closing table was polite and very helpful!

Erika Johnson