Yes, Construction Loans in Texas are Available for Those Who Are Their Own Builders

DALLAS, Sept. 26, 2019 /PRNewswire-PRWeb/ -- This is good news, especially for Texas home builders who have previously been barred from obtaining financing to build their own homes.

Because managing the construction of a home does require specific knowledge, skills, and expertise, this isn't for everyone. However, for those who meet the requirements to become the Builder of Record on their own home, it can mean significant savings.

To qualify for a construction loan in Texas, the Builder of Record must have built homes for others in the recent past and/or provide a work history to support residential construction knowledge. Before proceeding, he or she must also establish a Limited Liability Company or a Corporation as a Builder with the State of Texas.

As with any construction loan in Texas, bookkeeping requirements are exacting, and draws are based on presentation of paid receipts and/or lien releases signed by each materials supplier and subcontractor.

The builder must obtain W9 forms for all vendors and subcontractors who are paid more than $600 per calendar year and must file IRS 1099 forms for all who are not established corporations. Homeowners should check with their tax advisors for specific reporting requirements.

Inspection and permit requirements for those who wish to be their own builder and obtain construction loans in Texas are the same as for any home builder, as are the insurance requirements.
Required permits depend upon location and are different when building inside or outside of city limits. Since the construction loan will eventually be refinanced into a home mortgage loan, the type of loan (VA, FHA, or Conventional) will also affect the requirements. All Texas home builders must have General Liability and Builder's Risk Insurance.

Team leader Mike Clover says "If you have the experience and wish to obtain a construction loan in Texas and be your own builder, call us at 800-223-7409. We'll be happy to provide you with specific details and requirements."

SOURCE Homewood Mortgage,LLC