Austin, Texas
Austin Construction Loans
Austin is one of the fastest-growing luxury custom home markets in the country, with premier neighborhoods spanning from Westlake and Tarrytown to Lake Travis and Dripping Springs. An Austin one-time close construction loan lets you finance your custom home with a single closing, locking in your permanent financing before construction begins.
The Austin Market
Custom Home Construction in Austin
The Austin custom home market is driven by tech industry growth, Hill Country topography, and some of the most desirable lakefront and hilltop estate lots in Texas. Construction costs in Austin routinely exceed $350 per square foot for luxury builds, with many projects involving limestone foundations, steep grades, and private well and septic systems. Neighborhoods like West Lake Hills, Barton Creek, and Lakeway feature custom homes on large lots with commanding views. Many Austin builds involve acquiring an older home for teardown to access prime lots. Total project costs typically range from $1 million to $8 million and beyond.
Typical Build Budget
$1M – $8M+
Loan Type
One-Time Close
Why One-Time Close
Why Austin Borrowers Prefer a One-Time Close
In Austin, where construction timelines can stretch 12 to 18 months and interest rate markets can shift significantly during that period, a one-time close construction loan provides critical rate certainty. You lock your permanent interest rate at the beginning of the project, eliminating the risk of re-qualifying or facing higher rates when the home is complete. This is especially valuable for jumbo construction loans on Hill Country estate lots.
Single closing with one set of closing costs
Permanent interest rate locked before construction begins
No need to re-qualify after construction is complete
Interest-only payments during the construction period
Automatic conversion to permanent mortgage at completion
Loan Programs
Construction Loan Options in Austin
One-Time Close Construction Loan
A single loan covering construction and permanent financing. One closing, one set of closing costs, and rate certainty throughout the build.
Jumbo Construction Loan
For Austin custom homes exceeding conforming loan limits. We specialize in jumbo construction financing up to $10 million and beyond.
Lot & Land Financing
Secure your Austin building site with a lot loan that can later roll into your construction loan when you are ready to build.
Where to Build
Notable Austin Communities
West Lake Hills
One of Austin's most prestigious areas, known for large estate lots, Hill Country views, and top-rated Eanes ISD schools.
Barton Creek
A luxury gated community with a country club, golf courses, and custom estate homes on acreage lots.
Lake Travis Area
Waterfront and hilltop custom home sites with panoramic lake views and premium amenities.
FAQ
Austin Construction Loan FAQs
How do I finance a custom home build in Austin?
An Austin one-time close construction loan allows you to finance the lot purchase, construction costs, and permanent mortgage in a single loan with one closing. This is the most efficient way to finance a custom home in Austin, especially for luxury builds in West Lake Hills or near Lake Travis.
Can I finance a teardown and rebuild in Austin?
Yes. A one-time close construction loan can finance the purchase of an existing Austin home, demolition costs, and new construction all in one loan. This is a common approach for accessing prime lots in established neighborhoods.
Can I use land equity toward my Austin construction loan?
Yes. If you already own a lot in Austin, the equity in that land can be applied toward your down payment on a one-time close construction loan, reducing the cash you need to bring to closing.
Ready to Build in Austin?
With 26 years of mortgage experience and over $334 million funded since 2022, Darren Davey is your Austin construction loan expert. Let's discuss your project.