Ground-Up Construction in McAllen

Builders keep adding units even as the state pulls back, which points to lot supply holding up, not tightening. Hidalgo County permitted 7,301 private residential units in 2025, a series record and a 49% increase over five years (6,899 in 2023, 6,055 in 2021), while Texas single-family permits fell 11.7% statewide in the same year. Regional and out-of-market builders, including New Mexico's Hakes Brothers and El Paso's Edwards Homes, have expanded into McAllen-Edinburg communities alongside local custom builders, which is more evidence of available lots than any single data point. We don't have a verified McAllen lot price to quote 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 current fee schedule to hand you, and you shouldn't trust one off a builder's blog either. The only published figures we found for City of McAllen residential permits came from a single construction company's blog post, not the city's own fee schedule, so we're not repeating a number here that hasn't been confirmed against the permit office. What is verified: Hidalgo County kept issuing permits through 2025 at a record pace, so the process works at volume. Before you lock a construction budget, call the City of McAllen building permits office, or Edinburg's or Mission's, depending on the site, for the current fee schedule and build it into your draw schedule with us.

Confirm the lot is platted and actually has water and sewer service before you count on it. Hidalgo County is one of the most affected counties in Texas for colonias, unincorporated subdivisions historically sold as unplatted lots without water, sewer, or drainage. The state's response is a specific statutory layer that applies here: Model Subdivision Rules under Water Code section 16.343, border-county platting requirements under Local Government Code chapter 232, and Property Code chapter 5, subchapter D governing contracts for deed on residential property. Hidalgo County's own Subdivision Rules, effective October 9, 2018, define subdivision to include contracts for deed. Before closing, confirm the lot sits on a recorded plat rather than a metes-and-bounds slice of an unplatted tract, and run title deep enough to surface any old contract-for-deed chain. Take the title and utility documentation questions to your closing attorney; we underwrite around a clean plat and confirmed service.

We don't have a verified answer, and Texas gives you no statutory clock to fall back on. Unlike some states, Texas has no Florida-style statutory permit-review deadline, and we found no published data on actual review or inspection turnaround for McAllen, Edinburg, or Mission 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, and we'd rather set the clock long than watch you buy an extension.

Yes, check the FEMA flood zone on every lot before you build. The Valley is a flat river delta, and flooding here is documented, not theoretical: storms on June 24-25, 2019 dropped 12 to 18 inches of rain, destroyed or seriously damaged nearly 1,200 homes, and triggered a federal major disaster declaration for Hidalgo, Cameron, and Willacy counties. That's also why the Hidalgo County Drainage District #1 taxes essentially every parcel in the county, a flood-control levy layered on top of your other property taxes. Confirm the flood zone on your specific lot and price flood insurance as its own line item before you finalize the construction budget.

On the lot, the budget, the build schedule, and the finished value. No minimum score on this program. We run credit, but ground-up is asset-based: the file turns on the lot, the budget, the build schedule, and the finished value. Credit carries far less weight than it would at a bank, and a weaker profile is usually handled with lower leverage rather than a decline. There is no hard credit pull to start. Subject to underwriting.

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 McAllen 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 to plan around, budget the carry across the full 12 to 24 month term instead of a best case. Subject to underwriting.

No, but experience moves the leverage. Experienced builders can access higher leverage on this program, inside the same ceilings of up to 70% LTV and 85% of cost. A first-time builder still gets underwritten on the lot, the budget, and the finished value; the structure is simply set more conservatively. Bring a real contractor and a real draw schedule. Subject to underwriting.