Custom Home Building Resources
Information for homeowners planning a custom home, guest house or ADU, including construction financing, land and site considerations, budgeting, design and preconstruction, permitting, and the building process.
CONSTRUCTION FINANCING
Financing Your Build
If you plan to finance your custom home, a construction loan is typically used to fund the project through a series of draws as construction progresses. Capricorn Concepts is approved with several construction lenders and can also work with the lender of your choice. If your lender requires its own builder approval process, we can provide the requested builder documentation for review. During construction, we coordinate required draw documentation and inspections with the lender so funds are released in accordance with the progress of the project.
How Construction Loans Typically Work
Construction loan funds are released through a series of draws rather than as a single payment at closing. Each draw generally corresponds with completed construction and may require invoices, supporting documentation, a lender inspection, or other verification before funds are released. Depending on the loan structure, construction financing may convert to permanent mortgage financing after construction is complete.
When to Start Exploring Financing
If you plan to finance your build, speak with a construction lender early in the planning process. Understanding your available financing, required cash or equity, lender requirements, and overall budget before design is finalized can help establish realistic parameters for the build.
Using Land Equity Toward Your Build
If you already own the property where you plan to build, the equity in your land may count toward a lender's required equity or down payment, depending on the loan structure and appraised land value. This can reduce the amount of additional cash required at closing.
Financing terms, loan requirements, land valuations, and borrower qualifications vary by lender. Capricorn Concepts is not a lender or financial advisor.
For Real Estate Professionals
Capricorn Concepts works with real estate professionals whose clients are purchasing land, evaluating a property for new construction, or preparing to build.
We can get involved before a property is purchased to help evaluate the proposed build from a construction perspective, including site access, topography, utilities, septic requirements, potential site-development costs, and other conditions that may affect feasibility or budget. For clients who already own their property, we can provide preliminary construction pricing and help establish the next steps toward design and construction.
We also offer referral incentives to real estate professionals for qualifying client referrals that result in a construction contract with Capricorn Concepts.
VIEW BUILDER QUALIFICATIONS →
Capricorn Concepts’ builder credentials, experience, and approach to custom residential construction - available for clients and industry professionals.
→ Frequently Asked Questions - Answers to common questions about planning, designing, financing, and building with Capricorn Concepts.
→ Insights - Helpful information about custom home building, planning, design, construction, and building in the Texas Hill Country.
Contact Us
Planning a custom home or specialty build? Tell us a little about what you have in mind, where you’re building, and where you are in the process. We’ll review the details and be in touch to discuss next steps.