Build Your Dream Home or Renovate Your Existing Property
Construction and renovation loans let you finance the purchase of land, building costs, and major remodels in one convenient loan.
- One loan covers land, construction, and permanent mortgage
- Finance major renovations and remodels
- Pre-underwritten for approval certainty
About Construction and Renovation Loans
Construction and renovation loans help you build a custom home from the ground up or finance major remodels to an existing property. These loans combine construction financing with a permanent mortgage, so you only close once. Whether you are building on your land, buying land to build, or renovating a fixer-upper, Q Mortgage offers flexible construction financing options for Texas borrowers.
Who This Is For
- Texas buyers building custom homes on their own land
- Borrowers purchasing land and building simultaneously
- Homeowners planning major renovations (0,000+)
- Buyers purchasing fixer-uppers to remodel
- Families who want a custom home designed to their specifications
- Real estate investors renovating properties for resale or rental
Key Benefits
One-Time Close
Close once and convert to a permanent mortgage when construction is complete
Custom Design
Build your dream home exactly how you want it
Pre-Underwriting Process
Q Mortgage pre-underwrites construction loans for certainty before you break ground
Finance Renovations
Turn a fixer-upper into your dream home with renovation loan financing
Flexible Draw Schedule
Access funds as construction progresses in staged draws as work is completed
How It Works
Step 1: Secure Land
Own land or purchase land where you will build your custom home.
Step 2: Hire Contractor
Work with a Texas-licensed general contractor and architect to create plans.
Step 3: Get Pre-Underwritten
Q Mortgage pre-underwrites your construction loan based on plans, budget, and your finances.
Step 4: Close on Loan
Close once and receive access to funds for construction in staged draws.
Step 5: Construction Phase
Contractor builds your home with funds released in draws as each milestone is completed.
Step 6: Convert to Mortgage
Once construction is complete, the loan converts to a traditional permanent mortgage.
Qualification Requirements
- Credit score typically 680+ (varies by loan type)
- Down payment of 10-20% (construction) or 3.5-20% (renovation)
- Detailed construction plans and contractor bids required
- Licensed, insured contractor in Texas
- Debt-to-income ratio under 45%
- Strong cash reserves: 6-12 months recommended
- Appraisal showing as-completed value meets or exceeds loan amount
- FHA 203(k): Renovation loan with 3.5% down for fixer-uppers
- Fannie Mae HomeStyle: Renovation loan for more extensive projects
Construction vs. Renovation Loans
Choose Construction Financing if: You want to build a custom home on your land, are purchasing land and building simultaneously, or cannot find existing homes that meet your needs.
Choose Renovation Financing if: You are buying a fixer-upper that needs major work, your current home needs extensive renovations, or you want to increase your home value.
Projects covered by renovation loans: Kitchen and bathroom remodels, room additions, foundation and structural repairs, new roof/HVAC/major systems, accessibility modifications, and energy efficiency upgrades.
Frequently Asked Questions
Build or Renovate Your Texas Dream Home
Build your dream home from the ground up or transform a fixer-upper into your perfect property. Construction and renovation loans make it possible to create exactly what you want. At Q Mortgage, we pre-underwrite construction financing so you can move forward with confidence. From plans to completion, we are with you every step. Start building your future today.