Construction Loans · Houston & Greater Texas

Build the Home
You've Always Wanted.

Construction-to-permanent financing lets you build a fully custom home on your lot and roll everything into one loan at closing. One set of closing costs. One loan officer. From groundbreak to move-in — Tyler is with you the entire way.

Construction Loan Basics

Closing — Construction + Permanent Together
Interest
Only During Construction Phase
Draw
Schedule Based on Build Milestones
Converts
to Permanent at Certificate of Occupancy

Why One-Time Close Changes Everything

Traditional construction financing requires two closings — one for the construction loan, one for the permanent mortgage. That means two sets of closing costs, two rounds of underwriting, and double the stress. CMG's construction-to-permanent program does it all in one shot.

  • One application, one approval, one closing
  • Rate locked at closing — before construction begins
  • No re-qualifying at the end of construction
  • Saves thousands in duplicate closing costs
  • Available on Conventional, FHA, VA, and USDA programs
  • Interest-only payments during construction phase
  • Converts automatically at CO issuance

The Four Phases of Your Build

01 Pre-Approval

Qualification & Planning

Tyler reviews your income, credit, and assets. You select your lot, finalize your builder, and submit complete plans and specs. The loan is underwritten based on the finished home's appraised value.

02 Closing

One Closing — Rate Locked

You close the construction-to-permanent loan before the first shovel hits the ground. Your rate is locked. Your builder is approved. Funds are placed in a draw account ready for disbursement.

03 Construction

Draws & Inspections

As your home progresses through milestones (foundation, framing, rough-in, drywall, completion), draw requests are submitted and inspected. You make interest-only payments on the disbursed amount.

04 Completion

Conversion to Permanent Financing

When the certificate of occupancy is issued, the loan automatically converts to your permanent mortgage. No second closing, no re-underwriting. You move in and your regular payment begins.

Construction Loan FAQs

Yes — VA one-time close construction loans are available for eligible veterans. This means you can use your VA benefit to build a fully custom home with zero down payment and no PMI. The builder must be VA-approved, and the property must meet VA's Minimum Property Requirements upon completion. Tyler has experience with VA construction loans in the Houston market.
Not necessarily. Many construction loan programs allow the lot purchase to be rolled into the construction loan at closing. If you already own the lot free and clear, its value can often be counted toward your equity requirement (down payment). If there's an existing lien on the lot, that affects the structure. Tyler will walk through exactly how your lot situation fits into the loan design.
Funds are released to your builder in stages based on construction milestones verified by inspections. Typical draw milestones include: foundation completion, framing, rough mechanical (plumbing/electrical/HVAC), insulation and drywall, and final completion. The number of draws varies by program and lender. Tyler manages this process throughout your build and coordinates with the builder to keep things moving.
Construction loan terms typically allow 9–12 months for completion, with extension options available in some programs. Houston's weather, supply chain delays, and permit timelines can all affect build schedules. Tyler will discuss contingency options upfront and help you build a realistic timeline into your loan structure from day one.
No. A buyer's construction loan (this page) is taken out by the homeowner to build a home they intend to occupy. A spec construction loan is taken out by the builder to construct a home without a committed buyer. If you're a builder looking for spec financing, visit our Builders page.

Ready to Break Ground?

Construction loans have more moving parts than a standard purchase — and that's exactly why you want Tyler in your corner early. Let's map out your build financing before you sign a builder contract.