Purchase the land AND finance the build in one financing package — for buyers starting from scratch on raw lots in Texas. The lot must be buildable and lender-approved (zoning, utilities, access), and down payment runs higher than build-on-owned-land scenarios because you're financing the lot too.
A Land + Build construction loan rolls the purchase of the land and the cost of constructing your home into a single financing package. Common with buyers building from scratch on raw lots in Texas's fast-growing suburban edges — Conroe, Fulshear, Celina, Georgetown — it eliminates the need for a separate lot loan and lets you move directly into construction once the lot deal closes.
Without this product, buyers often pile up a separate lot loan first (with its own higher rate and short term), then a construction loan, then a permanent loan — three closings. Land + Build collapses that into one or two.
You can usually choose: a One-Time Close (single closing covers lot, build, and permanent) or a two-time close (construction loan first, then refinance to permanent). See those pages for the structural differences.
At closing, the loan funds two things: the lot purchase and the construction escrow. The seller is paid for the land (just like a normal lot purchase), and the rest of the funds sit in escrow for the builder. As construction milestones complete, the lender releases draws to the builder — interest-only during the build phase. Once the home is finished and passes final inspection, the construction portion converts (or refinances) to your permanent 30-year mortgage.
The lender uses the lesser of (a) lot price + construction cost or (b) the "as-completed" appraised value of the finished home on the lot. Your down payment is a percentage of that total — so financing both the lot and the build means a bigger absolute down payment than building on land you already own.
With One-Time Close, your permanent rate is locked at the start — covering both the lot and the construction financing. You don't re-qualify or re-price at conversion.
Compared to building on land you already own, the lender now has to underwrite two things: you AND the lot. Expect closer review of zoning, utilities, access, and any title or easement issues on the parcel before approval.
Lenders won't finance a lot they're not confident a home can actually be built on. The lot must meet a basic set of standards before approval — and these often eliminate lots that look fine at first glance.
I've seen buyers fall in love with a raw lot only to find it's unfinanceable — wrong zoning, no perc test possible, missing legal access. Send me the lot before you sign, and I'll have it screened before you're at risk.
Down payment applies to the full lot + build total. Lot purchase happens inside the closing. For illustration only — not an offer or approval. Excludes taxes, insurance, HOA, and mortgage insurance.
Land + Build is offered by the same wholesale investors that do OTC and two-time construction. As a NEXA broker I shop them for the structure and pricing that fits your specific lot and build.
Texas has unique constitutional lien rules for construction. On a homestead, the construction contract generally must be signed by both spouses, executed at the title company or an attorney's office, and signed at least one day after the contract date with a 3-day right of rescission. These protect homeowners but mean paperwork must be done precisely — I coordinate this with your title company.
| Feature | Land + Build | Build on Owned Land |
|---|---|---|
| What's financed | Lot + construction | Construction only |
| Down payment | % of larger total | Often offset by lot equity |
| Cash to close | Higher | Often much lower |
| Lot underwriting | Yes — full check | Limited (you already own) |
| Existing lot lien | N/A | Can be rolled into the build |
| Best for | Starting from no land | Already own your lot |
Then the Build on Owned Land program is almost always cheaper — your lot equity can drastically reduce or even cover the down payment. See that page.
Send me the lot before you sign — I'll pre-screen it for financing, then structure the loan to cover both lot and build in one package. No cost, no obligation. English & Turkish.