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Land and Construction Loans Texas: Build Your Dream Home

August 30, 2023

Are you dreaming of building your own piece of paradise along the Southeast Texas Gulf Coast? The idea of owning a beautiful plot of land and constructing your perfect custom home is exciting, but figuring out the financing piece may feel daunting.

That’s where Texas Gulf Bank comes in, ready to guide you through a seamless loan process that encompasses every step of your home-building journey.

Learn about land and construction loans Texas residents can benefit from, and how these types of loans are an efficient way to build the primary residence you always wanted to live in.

A Simple Loan Process for Your Financing Needs

Many homebuyers would love to build their dream home on an idyllic plot of land. But many residents avoid this option out of concern they would need separate financing for the land, construction costs, and mini-permanent mortgage*. Thankfully, Texas Gulf Bank offers a much simpler way to finally have the home you’ve always wanted.

*NOTE: Some creditors may offer one-time-close construction loans that include a permanent mortgage, but Texas Gulf Bank’s one-time close construction loans only include a mini-permanent mortgage.

Our land and home construction loans are designed to streamline the financing process for residents in our region. Qualifying applicants can secure funding for the land purchase, construction of your home, and mini-permanent mortgage.

Here are the lending steps involved in this seamless process.

1. Consumer Land Loan

Begin by financing the purchase of your desired land by applying for a consumer land loan. This initial step sets the foundation for your dream home and gets you one step closer to living along the Southeast Texas Gulf Coast.

2. Construction Financing

Once you have your land secured, a one-time close construction loan can support your financing needs during and after the construction period. This phase covers construction costs, ensuring that you have the necessary funds to build according to your vision.

3. Transition to Mini-Permanent Mortgage

Once the construction phase has been completed, the loan seamlessly transitions into a mini-permanent mortgage. The shift from construction to mini-permanent financing eliminates the need for a separate loan application and provides you with access to a mini-permanent financing solution tailored to your needs.

We understand the importance of an efficient home construction and financing process, so we offer land and construction loan programs that are both reliable and effective for Texas residents.

The Benefits of Land and Construction Loans in Texas

By choosing a land loan and one-time close construction loan through Texas Gulf Bank, you may enjoy a multitude of benefits as you begin the journey towards owning your custom home. Primarily, you may be able to save time and money with our streamlined process.

Instead of having multiple loan closings, you’ll have just a single loan closing with only one set of closing costs, increasing your savings potential. In addition, you’ll save valuable time and energy by having a single closing, instead of signing closing documents multiple times.

Then, once the construction is complete, the one-time close construction loan converts to mini-permanent loan financing, creating peace of mind that the mortgage loan is set for your new home.

Discover the Texas Gulf Bank Difference

In addition to offering the loan products that local residents need, we provide exceptional service from our dedicated lending team. We understand that the home-building process can be complex, but we’re here to make it as straightforward as possible.

Our experienced loan officers will guide you through each step, ensuring that you have a clear understanding of the loan process and that your questions are answered. By choosing Texas Gulf Bank, you gain the following benefits:

Expert Guidance

Our knowledgeable lending team will be by your side from the application process to move-in day, providing you with timely support at every turn. Our commitment to exceptional customer service means we are ready to answer questions and provide prompt solutions.

Simplified Process

We simplified the lending process so you can avoid the hassle of juggling different points of contact, multiple closing dates, and mountains of complex paperwork. With Texas Gulf Bank, you gain access to a single point of contact who will guide you through the entire process.

Also, all of our lending decisions are made in-house. The benefit to you is that your loan application will be promptly reviewed after providing us with a completed application and supporting documents.

Local Expertise

As a community bank serving this region for over 100 years, we have an in-depth understanding of the local real estate market and construction landscape. We understand the unique challenges of homeowners in the Southeast Texas Gulf Coast region, and our financing solutions are crafted to meet your specific needs.

Loan Application Requirements

Applying for land and construction loans through Texas Gulf Bank starts with an initial assessment to review your land and home construction plans, as well as loan qualifications. Potential borrowers will also be required to submit the following documentation as part of the loan application process, including but not limited to:

Consumer Land Loan:

  • Completed Real Estate Loan Application
  • Three years of personal tax returns, as well as W-2s upon request
  • Recent pay stub showing year-to-date earnings for current year
  • Executed earnest money contract for the purchase of the land from the seller
  • Two forms of ID (e.g. Texas Driver’s License, passport, or Social Security card)

One-Time Close Construction Loan:

  • Completed application for a one-time-close construction loan
  • 3 years of Personal Income Statements
  • 3 years of Federal tax returns, as well as W-2s upon request
  • Current pay stub showing year-to-date earnings for current year
  • Two forms of ID
  • Statement of existing debts
  • Statement of current assets
  • Property information
  • General Contractor or builder information
  • Construction plans and timelines

Once all required documents are received, the loan review process will begin. If you are approved for financing, the loan funding process may be expedited so you can begin working on your dream home as soon as possible.

Get Started Today with Texas Gulf Bank

At Texas Gulf Bank, we understand that every homeowner’s vision is unique. That’s why we offer comprehensive financing solutions that cover every aspect of turning your dream home into a reality.

From purchasing the perfect piece of land to constructing your home and establishing mini-permanent financing, our loan solutions ensure a simple and hassle-free experience.

If the journey towards your dream home requires land and construction loans Texas Gulf Bank is the lending partner for you.

Contact us today to begin your application process and take the first exciting step toward living in your very own Gulf Coast paradise. Your dream home awaits with the support of Texas Gulf Bank.

Interested in a complimentary
consultation with one of our bankers?

All Loans Subject to Credit Approval