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New Construction loans in Texas

Quick answer

Buying a newly built home in Texas uses a standard FHA (3.5% down), conventional (3%–5%), VA or USDA (0%) purchase loan; building your own uses a construction-to-permanent loan. On a $260,400 home, 3.5% down is about $9,114, and builder incentives are capped by each program.

By Purchase Mortgage Loan Editorial Team Checked against official sources per our editorial standardsLast updated

New Construction loan snapshot for Texas

ItemEstimate
Minimum down payment0%–20% (by loan program)
Minimum credit score580–680 (by loan program)
Typical TX home value$260,400
3.5% down on typical home$9,114
20% down on typical home$52,080
Avg. effective property tax1.58%/yr (~$343/mo)
Income for typical home (31% rule)$87,000

Rate assumption: 7.18% (Freddie Mac PMMS 30-year fixed average, week of November 5, 2026). Change it in the payment calculator.

Which Texas programs pair with New Construction loans?

  • My First Texas Home: A first mortgage with down payment assistance for first-time buyers and veterans.
  • My Choice Texas Home: Assistance for buyers who are not first-time buyers but meet income limits.
  • Homes for Texas Heroes (TSAHC): Assistance for teachers, first responders, nurses, corrections officers and veterans.

Details and current limits: Texas Dept. of Housing and Community Affairs (TDHCA) & TSAHC.

Buying a new home from a builder vs. building your own: what's the difference?

Most buyers of new homes buy from a production or spec builder: the builder owns the land, builds the house and sells it to you. You finance it with a normal purchase mortgage that closes when the home is complete and has a certificate of occupancy. If the home isn't finished yet, the builder's contract usually sets a deposit and an estimated completion date, and your rate lock has to cover the wait.

Building your own (a custom home on land you own or are buying) works differently. Because there's no finished house to secure a regular mortgage, lenders use a construction loan that pays the builder in stages (draws) as work is inspected, then either converts to a permanent mortgage or is paid off by one.

Construction-to-permanent (one-time close) vs. two-time close

One-time close reduces paperwork and protects you if rates or your finances change during the build. Two-time close can offer more lender choice and lets you shop the permanent mortgage after the home is done.

FeatureOne-time closeTwo-time close
ClosingsOne — construction and mortgage togetherTwo — construction loan, then a separate mortgage
Closing costsOne setTwo sets
RatePermanent rate usually set at the first closingMortgage rate set when you close the second loan
Re-qualifyingNo second approvalYou must qualify again after the build
ProgramsFHA, VA, USDA and conventional (Fannie Mae/Freddie Mac) versions exist; fewer lenders offer themWidely available; construction loan is often interest-only

New Construction loans in Texas cities

New Construction in HoustonNew Construction in San AntonioNew Construction in DallasNew Construction in AustinNew Construction in Fort WorthNew Construction in El PasoNew Construction in ArlingtonNew Construction in Corpus ChristiNew Construction in PlanoNew Construction in LubbockNew Construction in LaredoNew Construction in IrvingNew Construction in GarlandNew Construction in FriscoNew Construction in McKinneyNew Construction in AmarilloNew Construction in Grand PrairieNew Construction in BrownsvilleNew Construction in KilleenNew Construction in PasadenaNew Construction in MesquiteNew Construction in DentonNew Construction in McAllenNew Construction in WacoNew Construction in MidlandNew Construction in CarrolltonNew Construction in LewisvilleNew Construction in AbileneNew Construction in PearlandNew Construction in Round RockNew Construction in College StationNew Construction in RichardsonNew Construction in The WoodlandsNew Construction in League CityNew Construction in OdessaNew Construction in BeaumontNew Construction in Sugar LandNew Construction in TylerNew Construction in AllenNew Construction in EdinburgNew Construction in Wichita FallsNew Construction in San AngeloNew Construction in New BraunfelsNew Construction in ConroeNew Construction in AtascocitaNew Construction in TempleNew Construction in MissionNew Construction in BryanNew Construction in BaytownNew Construction in LongviewNew Construction in PharrNew Construction in GeorgetownNew Construction in Flower MoundNew Construction in Cedar ParkNew Construction in MansfieldNew Construction in Missouri CityNew Construction in HarlingenNew Construction in North Richland HillsNew Construction in San MarcosNew Construction in Leander

Frequently asked questions

Yes. New Construction loans are available statewide in Texas through approved lenders, subject to county loan limits where they apply.

Often yes. Texas Dept. of Housing and Community Affairs (TDHCA) & TSAHC and local programs frequently pair assistance with FHA, conventional, VA or USDA first mortgages. Eligibility depends on income, price and program rules.

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Figures on this page are estimates for educational purposes only and are not a loan offer or commitment to lend. Rates, loan limits, fees and assistance programs change frequently and vary by lender, location and borrower profile. Confirm current terms with a licensed loan officer.