Dallas, Texas
Dallas Construction Loans
Dallas is one of the most active luxury custom home markets in the country, with premier neighborhoods like Preston Hollow, Lakewood, and the Park Cities commanding some of the highest build costs in Texas. A Dallas one-time close construction loan lets you finance your custom home with a single closing, locking in your permanent financing before construction begins.
The Dallas Market
Custom Home Construction in Dallas
The Dallas custom home market spans from inner-loop teardowns and rebuilds in established neighborhoods to expansive estate lots in North Dallas. Construction costs in Dallas routinely exceed $400 per square foot for luxury builds, and many projects involve acquiring an existing home for demolition before new construction can begin. A construction lender who understands the Dallas market knows how to structure a loan that accounts for lot acquisition, demolition, soft costs, and the full build budget.
Typical Build Budget
$1.5M – $10M+
Loan Type
One-Time Close
Why One-Time Close
Why Dallas Borrowers Prefer a One-Time Close
In Dallas, 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, where even a small rate increase can mean thousands of dollars per year.
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 Dallas
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 Dallas custom homes exceeding conforming loan limits. We specialize in jumbo and super jumbo construction financing up to $10 million and beyond.
Lot & Land Financing
Secure your Dallas building site with a lot loan that can later roll into your construction loan when you are ready to build.
Where to Build
Notable Dallas Communities
Preston Hollow
Dallas's most prestigious estate neighborhood, known for large lots and architecturally significant custom homes.
Lakewood
Historic East Dallas neighborhood with mature trees and a mix of architectural styles, popular for teardown-and-rebuild projects.
Highland Park & University Park
The Park Cities offer some of the highest property values in the state, with custom builds frequently exceeding $5 million.
Builder Network
Premier Custom Builders in Dallas
We work with Dallas's top custom home builders. While you may choose any licensed builder, here are some of the premier builders active in the Dallas market:
FAQ
Dallas Construction Loan FAQs
How do I finance a custom home build in Dallas?
A Dallas 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 Dallas, especially for luxury builds in neighborhoods like Preston Hollow or Lakewood.
What is the maximum construction loan amount in Dallas?
There is no hard cap for jumbo construction loans in Dallas. Loan amounts depend on your qualifications, the appraised value of the completed home, and your builder's budget. Darren Davey has closed construction loans exceeding $8 million.
Can I use land equity toward my Dallas construction loan?
Yes. If you already own a lot in Dallas, 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 Dallas?
With 26 years of mortgage experience and over $334 million funded since 2022, Darren Davey is your Dallas construction loan expert. Let's discuss your project.