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Commercial Real Estate Services

Interim Construction Financing

IRC Capital Residential, Ltd. is a San Antonio based lender for interim construction financing for new home construction. We are a private, non-bank lender, offering greater flexibility and speed in originating construction loans. Founded in 2009, IRC Capital Residential, Ltd, combined with its predecessor, has originated over $230-million in construction loans for over 900 homes.

The current state of the credit markets makes it difficult for most regional and small home builders to find new home construction financing. The objective for the fund is to provide interim construction loans to single family home builders from a private equity loan pool.

Lending Criteria

Geographic Focus for Construction Lending

IRC Capital Residential, Ltd. originates construction loans for new home builders and residential land developers in the San Antonio, Austin, Dallas and Houston Markets.

Our Team

The IRC team has decades of experience in all phases of residential construction, land acquisition, development and related issues and maintains relationships with division presidents and land acquisition personnel of national, local, and regional home builders. The IRC team harnesses its experience and relationships to provide creative solutions that can take a residential project from its inception to completion.


Suppose an individual has a residential property that he plans to sell. The property is under the mortgage, and the closing cost will range around $20,000. Now, it is valued at $1,200,000 and has a pending balance of $300,000.

The individual is planning to buy a new residential property which amounts to $2,200,000, wherein it can procure up to $1,000,000. The remaining amount the individual has to pay, which is $3,200,000, can be financed through the bridge funding allowing the individual to buy the new property.

An interim construction loan is a secured short-term lending that is provided to support the construction of apartments, homes, complexes, office buildings, shopping centers, and other durable permanent structures. It usually lasts only till the time of completion of construction.

During construction, one has to pay the interest. It is only after completion of the construction that one has to start paying off the loan. Further, because of the higher risk involved, construction loans usually have higher interest rates than traditional mortgage loans. IRC Capital Residential Ltd. provides loan amounts ranging from $100,000 to $600,000+ for a term of 9 to 12 months.

As one of the largest states in the USA, Texas has a flourishing construction industry. Needless to say, construction loans are available in a vast array of options to build a new home or for renovation purposes.

In Texas, Construction loans typically involve a lender who provides requisite funds to the borrower in a number of installments as the construction project progresses. Further, construction loans in Texas tend to have lower interest rates than other types of loans, such as home equity loans.

One of the major advantages of Texas construction loans is that they can be used to finance the purchase of the property and the construction costs associated with that property.

There are national construction lenders extending construction loans throughout the country requiring a 5% down payment for a construction loan.

The borrower can use the equity on the land instead of a down payment. There is a 12-month seasoning essentiality; if the borrower owns the land for over 12 months, he may use the appraised value of the property to fulfill the 5% down payment requirement.

In case the borrower does not meet the requirement, the value which is lesser than the acquisition cost or the appraised value will be used.

Construction loans in Texas will involve a lender providing funds to a borrower in a series of installments.

Borrowers are required to provide detailed plans and specifications regarding the project, estimated budget, and timeline of the completion of the project. In Texas, construction loans can be used for both residential and commercial purposes. They can be either short-term or long-term and can have fixed-rate or variable-rate depending on the market.

For any further queries regarding construction loans in Texas, you can connect with us via call at (210) 828-9261.