From growing suburbs in Dallas–Fort Worth to rural builds in the Hill Country, real estate investors across the state are leaning into private lending for residential new construction. And for good reason. It’s a fast-paced, capital-intensive business. Traditional banks often can’t keep up with the speed, complexity, and capital requirements for today’s construction projects.
Private lenders offer faster closings, flexible loan terms, and a real-world understanding of what builders face on the ground. If you’re looking to build homes in Texas, here’s why working with a private lender might be the smartest move you make.
Faster Loan Approval Means Faster Acquisition and Construction
Time kills deals. Banks can take 30 to 60 days—or longer—to approve a construction loan. That delay can be costly because a property may sell to another buyer, contractors may take other jobs, or pricing may change.
Private lenders move quickly. Most can close in a week or two. For a builder who needs to acquire land or pay contractors weekly, that kind of speed is essential. With hard money construction loans in Texas, there’s less waiting and more building.
Flexible Terms and Larger Loans
Every build is different, so why force a cookie-cutter loan onto a custom project? Highly regulated banks usually offer rigid terms based on outdated, government-regulated criteria. Private lenders, on the other hand, are not highly regulated and evaluate deals based on their actual potential.
Whether you’re constructing a spec home, a duplex, or a small infill development, private construction financing gives you more flexibility and, most importantly, more money from larger loans. Loan amounts, draw schedules, and timelines can be adjusted to fit your build, not the other way around.
Deep Knowledge of Local Markets
A private lender based in Texas knows the difference between building in Dallas, Fort Worth, Austin, or Houston. They understand zoning rules, permitting challenges, utility delays, and how local comps impact your exit strategy.
That kind of insight helps you avoid pitfalls and get ahead of problems early. It also means faster underwriting and loan approval. Local lenders don’t need a committee to tell them whether your new construction real estate loans make sense.
Fewer Hoops, More Control
Applying for a bank loan is a huge hassle. It usually means jumping through big hoops: personal financials, significant cash reserves, years of tax returns, full credit history, and permit-ready architectural plans. That’s fine if you have six months to prepare. But most builders don’t.
Private lenders simplify the process. They focus on the project itself: land value, construction budget, ARV (after repair value), and your team’s experience. You’ll spend less time submitting documents and more time on the actual build.
Great for Lot-Only or Land and Build Packages
Buying a lot with the intent to build often triggers red flags for traditional lenders. Many won’t fund land purchases without a full permit set of architectural plans or a city-approved construction plan.
Private lenders are different. They regularly fund construction loans that cover both the lot and the build, even when the exit strategy is a sale or long-term rental refinance. That’s a huge benefit for builders who secure land quickly and want to get started before missing out on market opportunities.
Designed for Builders and Investors
Private lenders work with real estate professionals every day. Whether you’re a GC with boots on the ground or an investor managing rentals, they speak your language.
They understand margin, leverage, and timelines. They know things don’t always go exactly to plan. And they work with you to solve problems, not just flag them. If you’re looking for real estate development loans in Texas, this mindset can save time and money.
Scalable for Long-Term Growth
Experienced home builders are constantly improving their processes and systems in an effort to grow their business. Private lending is a tool that makes scale possible.
Instead of waiting on lengthy bank approvals for each new project, private capital lets you move faster, close deals while they’re hot, and free up capital for other investments. For many, it’s not just a short-term fix, it’s a long-term strategy.
That’s why savvy builders continue to use private lending for new construction, even after they’ve built track records with traditional lenders.
Who Should You Call First?
If you need speed, friendly loan terms, and local insight, Avondale Private Lending is the name to know. Based in Dallas, Texas, with over 800 deals and $400 million funded, Avondale works directly with home builders and investors to provide alternative real estate funding that meets real-world needs.
Whether you’re buying a lot, building new, or scaling your home building business, Avondale offers direct access to ground-up construction financing in Texas without the slow approvals, low leverage or unnecessary hurdles.
Their team understands new construction. They know how to underwrite deals fast. And they treat builders like partners, not just applications.