Ground-Up Construction in Laredo

The trend is fewer permits, not more. Webb County issued 1,340 private residential building permits in 2025, the third straight annual decline and about 20% below the 2021 peak of 1,684 (1,448 in 2024, 1,542 in 2023). That is the opposite of a boom market: a modest, steady pipeline rather than a wave of new lots coming online. We don't have a verified Laredo lot price to hand you, so run the actual comp on your target lot before you underwrite the deal, and ask us what we can confirm.

We don't have a verified fee schedule to hand you. The City of Laredo's permit fee schedule, plan review timelines, and impact fees weren't available from a source we'd stand behind, and Texas sets no statewide fee to fall back on. Call the City of Laredo building permits office for the current schedule before you lock a construction budget, and bring the number to us so we can build it into your draw schedule.

Confirm the lot is platted and actually has water and sewer service, or the sale itself may not be valid. Webb County sits within 50 miles of the border, which makes it a Subchapter B county under Local Government Code chapter 232: the sale of a rural lot lacking water and sewer service, or a financial guarantee for their construction, is forbidden except by someone who resides on the lot. Subdividers must either install water, sewer, roads and drainage before final plat approval, or post a bond tied to a promised operability date, the "build it or bond it" rule, and border counties must apply the Texas Water Development Board's Model Subdivision Rules regardless of funding source. Before we fund a lot outside city limits, confirm it sits on a recorded plat, confirm actual water and sewer service rather than "available nearby," and run title deep enough to surface any contract-for-deed chain. Take the platting and utility documentation questions to your closing attorney; we underwrite around a clean plat and confirmed service.

It can outweigh the entire city tax rate, so check it before you commit to a lot. Gateway MUD #1 and Webb County MUD #1 each levy 1.000000 per $100 of value on top of the underlying county, school and college rates. An unincorporated United ISD parcel inside one of those districts stacks to about 2.3653% combined, higher than a City of Laredo parcel in the highest-tax school district (about 2.3066%). That's a carry question for after you're built and renting, but it belongs in your feasibility math before you buy the lot, not after.

We don't have a verified answer, and Texas gives you no statutory clock to fall back on. Unlike some states, Texas sets no statutory permit-review deadline, and we found no published data on actual review or inspection turnaround for Laredo specifically. Build your construction timeline around the lot's actual permit history and your builder's recent experience with the local permit office, not around an assumed number, and set your draw schedule with real buffer. We size the construction term to the build you're actually doing.

Roughly 15% of total cost, plus your carry. We fund up to 85% of cost and up to 70% of value, whichever binds first. On a $300,000 all-in build that is up to $255,000 from us and $45,000 from you (300,000 x 85% = 255,000), with the vertical drawn against the build schedule rather than funded up front. Since Texas gives you no statutory permit clock and we don't have a verified Laredo timeline, budget the carry across the full 12 to 24 month term instead of a best case. Subject to underwriting.

We fund new construction up to 70% of value and up to 85% of total cost (land plus build), in most states, on loans up to $5M. Experienced builders reach the higher end of leverage. We finance both the lot and the vertical construction within those caps.

Yes. Lot acquisition is funded as part of your loan-to-cost. If you already own the lot, that equity can serve as your down payment, which often lets us fund most or all of the build cost.

Construction funds are released in draws as milestones are completed and verified, not handed over at closing. You submit your budget and scope of work up front, complete a phase, request a draw, and we release that portion after inspection. You pay interest on funds as they are drawn.

Our construction pricing starts around 10%, interest-only, on terms of 12 to 24 months. Market ground-up rates generally run 9% to 12% with 1 to 3 points. Your pricing and leverage depend on your build experience and the strength of the project.

We consider builders at all levels, though a track record helps your leverage and rate. A first-time builder should expect to bring a strong general contractor, a detailed budget, and typically a larger equity contribution. A well-documented project goes a long way.

The lot cost or current value, your construction budget and scope of work, the projected after-built value, and your build experience. With those we can size the loan against both cost and completed value and send you terms.