Austin ground up construction loans, from the dirt up.
Built for spec home builders and developers. We fund the land and the vertical build up to 70% LTV and 85% of cost, with draws that keep pace with the job. Austin posts a 10 business day target on residential plan review, and street impact fees clear before the permit. Business-purpose only, and every structure is set in underwriting.
Typical figures, subject to underwriting and market conditions. Not a commitment to lend.
How it works
We finance both the land and the vertical construction, with a draw schedule built around your timeline. Experienced builders can access higher leverage on cost.
How long does Austin residential plan review actually take?
The city's posted target is 10 business days for new construction and additions, per review cycle. That schedule took effect July 1, 2026, and it also posts 5 business days for demolition and 7 for update submittals, with express review typically same day. The number to watch is "per cycle": every correction sends you back through review, so a plan set that draws two rounds of comments spends multiples of the posted window before you have a permit in hand. Austin runs an AI Pre-Check beta that gives eligible residential applicants automated feedback before formal intake, which exists specifically to cut revision cycles, and you track status in the Austin Build + Connect portal. We size the term on your real permit path, not the posted target.
What city fees belong in an Austin ground-up budget?
Start with $7,700 of Austin Water impact fees plus a street impact fee. For a standard 5/8-inch or 3/4-inch residential meter on property platted after October 1, 2023, the capital recovery fees are $4,800 for water and $2,900 for wastewater, uniform across zones. Property platted earlier uses a different schedule, and plats before January 1, 2014 can carry zone-based variations, so check your plat date rather than assuming. Street impact fees were adopted in 2020 and collection began June 21, 2022; rates vary across 17 service areas, the fee is collected when the building permit is issued, and the city will not release the permit if it is unpaid. Both of those are hard costs on day one of vertical work, and they belong in the cost basis we lend against.
Do Austin's HOME amendments change what I can build on a single lot?
Yes, and it changes your exit as much as your plan. HOME Phase 1, adopted December 7, 2023 with applications from February 5, 2024, allows up to three housing units on a Single-Family zoned property (SF-1, SF-2, SF-3), including tiny homes, and removed limits on unrelated adults per unit. Phase 2, adopted May 16, 2024 and open citywide since November 16, 2024, cut the minimum lot size for one unit from 5,750 square feet to 1,800 square feet and allows that unit through either a subdivision or residential-infill application or, on existing substandard lots, a building permit application. Both phases are in effect and accepting applications. A lot that penciled as one house may now pencil as a lot split or three units, which is a different loan and a different exit, so bring us the site plan you can actually permit. Zoning judgment calls go to your land use attorney.
How should I underwrite the resale exit on an Austin spec build?
Assume a longer marketing period and a price cut. As of August 2026 the Austin area was carrying roughly 5.9 to 6.0 months of inventory with a median 68 days on market, and 55.57% of active listings had already taken at least one price reduction. Median sale price for the Austin-Round Rock-San Marcos MSA was $435,000 in July 2026, up about 1% year over year, while the city of Austin median was $577,000, down 1.4%. Core and suburbs are moving in different directions, so comp to your submarket rather than to the metro. Construction terms run 12 to 24 months, and on an Austin spec deal we would rather set the term long enough to sell into a slow market than watch you buy an extension.
What do property taxes do to my carry while the build is underway?
You get none of the homeowner protections, so carry is a full-rate line item. Texas caps annual appraised value increases at 10% for homestead property, and investment property qualifies for neither the homestead exemption nor that cap. The separate 20% circuit breaker on non-homestead appraised value requires you to have owned the property for a full January through December calendar year, so a lot bought and a house sold inside twelve months never gets it, and the cap is authorized only for tax years 2024, 2025 and 2026 and expires after 2026 unless the Legislature extends it. Combined all-entity rates in Travis County typically run about 1.78% to 2.10%, depending on the school district, city, MUD, and any PID at the specific address. Pull the actual rate for the parcel before you set your carry budget, and take the tax planning to your CPA.
How much do I need to bring to an Austin ground-up build?
About 15% of total cost. We go up to 85% LTC and 70% LTV, whichever binds first, up to $5M. On a $2M Austin project that is up to $1.7M from us against cost (2,000,000 x 85% = 1,700,000), with the 70% LTV test applied against finished value. On a spec build where your exit price is uncertain, the LTV test is usually the one that binds, not the cost test. Subject to underwriting.
What credit score do I need for a construction loan in Austin?
No minimum score. We underwrite the land, the build budget, the draw schedule, and the exit. Experienced builders can access higher leverage, so a real track record moves your terms more than your score will. Subject to underwriting.
More Ground-Up Construction questions, answered on the program page
Local rules move. Every tax rate, fee, ordinance and market figure here comes from a primary source and carries the date we read it, and we correct them as the rules change. Where a number is mid-change or we could not verify it, we say so rather than guess. Before you commit a budget, confirm anything that drives it with the city or county, and talk to your attorney or CPA on questions of law or tax.
Published by USA Mortgage Funding, LLC, NMLS #152588. Researched from primary sources by our team, drafted with AI assistance, and every figure checked against its source before publishing. Where an answer rests on a public record, that record is linked under it. Figures read on 2026-08-12.
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