Finance Your Brand New Texas Home

New construction loans help you buy a home being built by a builder–move into a brand new property with modern features and warranties.

About New Construction Financing

New construction financing is for buyers purchasing a home being built by a builder in a new development or subdivision. These loans work like traditional mortgages but have special considerations for properties still under construction. You can lock your rate early, close when the home is complete, and move into a brand new Texas property with modern features, warranties, and no previous owners.

Who This Is For

Texas buyers purchasing homes in new subdivisions or developments
Families who want brand new construction with modern features
Buyers who want to customize finishes, colors, and upgrades
Those purchasing from production builders (DR Horton, Lennar, etc.)
First-time buyers who want move-in-ready new homes
Borrowers who value warranties and energy-efficient construction

Key Benefits

Brand New Home

Move into a property that has never been lived in

Modern Features

New construction includes the latest in energy efficiency, technology, and design

Pre-Underwriting Process

Q Mortgage pre-underwrites your loan before construction is complete

Builder Warranties

New homes come with warranties covering structure, systems, and appliances

Customization Options

Choose finishes, colors, countertops, flooring, and more

How It Works

Step 1: Choose Your Builder

Select a production builder and floor plan in a Texas subdivision or development.

Step 2: Get Pre-Underwritten

Q Mortgage pre-underwrites your loan so you are ready to proceed with the builder.

Step 3: Sign Builder Contract

Sign a purchase agreement with the builder, including timeline and customization choices.

Step 4: Lock Your Rate

Lock your rate when construction starts or closer to completion depending on timing.

Step 5: Construction Phase

The builder constructs your home (typically 4-9 months). You may make site visits to monitor progress.

Step 6: Final Walkthrough

Inspect the completed home with the builder to ensure everything meets your expectations.

Step 7: Close on Your Home

Once construction is complete and final inspections pass, close on your loan and move in!

Qualification Requirements

Credit score typically 620+ (FHA) or 680+ (conventional)
Down payment of 3-20% (depending on loan type)
Debt-to-income ratio under 45-50%
Steady employment and income verification
Builder must be reputable and licensed in Texas
Property must appraise at or above purchase price when complete
Loan approval valid through construction completion (4-12 months)

New Construction vs. Existing Homes

New Construction: Brand new, customizable, warranties, modern features, higher price. Choose this if you want a brand new home, want to customize finishes, and value builder warranties.

Existing Homes: Move-in ready, established neighborhoods, lower price, potential repairs needed. Choose existing if you need to move in immediately or prefer a lower price.

Loan options: FHA (3.5% down), VA (/usr/bin/bash down for veterans), Conventional (3-5% down), USDA (/usr/bin/bash down for eligible rural areas).

Frequently Asked Questions

What is the difference between new construction financing and a construction loan?

New construction financing is for buying a home a builder is constructing. A construction loan is for building a custom home on your own land with your own contractor.

When do I lock my interest rate?

Rate lock timing varies. Some lenders lock when you sign the contract; others lock closer to completion. Ask Q Mortgage about options.

What if the home is not completed on time?

Construction delays happen. Your loan approval typically extends through reasonable delays. Work with your builder to stay updated on timelines.

Can I make changes during construction?

Major structural changes are difficult once construction begins. Finishes (paint, flooring, countertops) can often be changed early in the process.

What if the home does not appraise for the purchase price?

If the appraisal comes in low, you may need to renegotiate with the builder, bring extra cash, or walk away depending on contract terms.

Do new homes come with warranties?

Yes. Most builders offer 1-year warranties on workmanship, 2-10 years on systems (HVAC, plumbing), and 10 years on structural issues.

Can I use down payment assistance for new construction?

Yes, if the builder allows it and you qualify for DPA programs. Not all builders accept down payment assistance–ask upfront.

Does Q Mortgage pre-underwrite new construction loans?

Yes. We pre-underwrite all loans so you are ready to sign with the builder and have confidence through construction completion.

Build Your Brand New Texas Home

Move into a brand new Texas home built just for you. New construction financing lets you buy a modern, energy-efficient property with warranties and customizable features. At Q Mortgage, we pre-underwrite your loan before construction begins so you can proceed with confidence. No surprises, no delays–just clear communication and expert guidance. Get pre-approved for new construction today.