Your bank is at 57% of cost. That gap is the equity you are out raising.
Construction debt for Texas developers.
Banks are underwriting ground-up construction at 55 to 65% of cost, with recourse, and only for sponsors who can show three comparable completions. Debt funds are lending to 70 to 75% of cost, non-recourse, and they price for the risk rather than decline it. On a $50m project the difference is $6m to $9m of equity you would otherwise be raising. We take your project to the lenders who go there.
Current terms
| Index | Value | Source |
|---|---|---|
| 10-year Treasury | 4.96% | US Treasury, 11 Sep 2026 |
| 5-year Treasury | 4.78% | US Treasury, 11 Sep 2026 |
| SOFR | 3.62% | Federal Reserve Bank of New York, 11 Sep 2026 |
| Prime | 6.75% | Federal Reserve, Sep 2026 |
| Bank construction, recent closings | 60 to 80% of cost, 6.25 to 6.75% | Announced closings, Jan to Jul 2026 |
| Debt fund construction, recent closings | 70 to 88% of cost, non-recourse | Announced closings, May to Jul 2026 |
Updated 2026-09-11. All current terms and sources
Principal
Joseph Eun
Capital markets background, Australia. Former equity capital markets banker, transactions to A$1bn. KPMG. Law and accounting.