Fort Worth has officially crossed the one-million-resident threshold, making it the 11th largest city in the United States and cementing its status as one of the fastest-growing construction markets in the country. With a $630 million Stockyards expansion, a transformative Panther Island canal district, a $701 million convention center overhaul, and more than 7.7 million square feet of industrial space in the AllianceTexas pipeline alone, developers in Fort Worth face no shortage of opportunity. What they need is the right financing to turn those opportunities into completed projects.
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Why Is Fort Worth One of the Best Markets for Construction Lending Right Now?
Fort Worth added 23,442 new residents between July 2023 and July 2024, making it the fifth-fastest-growing large city in the nation. Over the past four years, the city has added nearly 71,000 residents, growing at a faster pace than any other major Texas city, including Austin. The Dallas-Fort Worth metro ranks second in the country for new residential building permits, and that momentum extends to commercial and industrial construction as well.
Several major catalysts are fueling the construction pipeline. The Stockyards Phase Two project, led by Majestic Realty and Hickman Companies through Fort Worth Heritage Development, will add at least 300,000 square feet of commercial space, a 500-key full-service hotel, 295 apartment units, and 1,300 parking garage spaces. This $630 million investment is expected to nearly double the size of the entertainment district by 2032.
Panther Island is finally moving from concept to construction. The Tarrant Regional Water District has earmarked up to $50 million for canal and park construction beginning in 2026, with design already 30% complete. Seco Ventures, the island's largest private landowner with 26 acres, has started land planning for a 300-unit apartment complex. The city is also preparing sweeping zoning updates for the island that will be publicly reviewed in 2026.
Meanwhile, downtown Fort Worth is absorbing more than $1 billion in active construction. Texas A&M Fort Worth is building out a multi-building innovation district anchored by its Law and Education Building, and the $701 million Fort Worth Convention Center renovation is progressing through its first phase, with Phase Two construction expected to begin in late 2026.
For developers seeking vertical construction or horizontal construction financing, Fort Worth presents a compelling combination of population growth, job creation, and public infrastructure investment that lenders find attractive during underwriting.
How Do Construction Loans Work in Fort Worth?
A construction loan provides short-term capital to cover the costs of building a new structure from the ground up. Unlike a traditional commercial mortgage, these loans are disbursed in stages called "draws" that correspond to completed phases of the project. Borrowers pay interest only on the funds that have been drawn, not on the total loan commitment.
Most Fort Worth construction loans carry terms of 12 to 24 months for the building phase. Once the project reaches completion and receives a certificate of occupancy, borrowers either refinance into a permanent loan or pay off the construction debt through a sale. Some lenders offer a single-close construction-to-permanent structure that rolls both phases into one loan, eliminating the need for a second closing and saving on fees.
The draw schedule typically follows a predictable sequence: an initial advance for site preparation, followed by draws at foundation completion, framing, mechanical rough-in, drywall, and final completion. Lenders send third-party inspectors to verify completed work before releasing each draw, keeping the project accountable and on schedule.
Fort Worth's permitting process runs through the city's Development Services department. Commercial plan review typically takes 2 to 4 weeks, and lenders will require all permits in hand before funding the initial draw. Developers working in special districts like the Stockyards Historic District or the future Panther Island overlay zone should budget additional time for design review.
What Types of Construction Loans Are Available in Fort Worth?
Fort Worth borrowers have access to several construction financing structures, each suited to different project types, timelines, and borrower profiles.
Conventional Construction Loans from regional banks and credit unions offer competitive rates typically ranging from 6% to 8%. These require 20% to 25% equity and work best for experienced developers with established banking relationships and strong financial statements. Fort Worth's healthy local banking sector means borrowers can find lenders with genuine market knowledge.
SBA 504 Construction Loans provide longer terms and lower down payments for owner-occupied commercial properties. Borrowers can finance up to 90% of total project costs, making these attractive for businesses constructing their own facilities in Fort Worth's growing office and medical corridors.
Hard Money and Private Construction Loans offer speed and flexibility, with approvals possible in 10 to 15 business days. Rates run higher (9% to 12%), but these programs accommodate borrowers with less-than-perfect credit or unconventional project profiles. They are popular among fix-and-flip developers and investors moving quickly on land acquisitions in competitive submarkets.
Bridge-to-Construction Financing combines a bridge loan for land acquisition with a construction line, allowing developers to secure a site while finalizing architectural plans and permits. In a market where desirable parcels near downtown, the Stockyards, or Panther Island move fast, this structure provides a competitive advantage.
What Are Current Construction Loan Rates and Terms in Fort Worth?
Construction loan rates in Fort Worth reflect both national interest rate conditions and local market dynamics. Here is what the market looks like for commercial construction financing as of early 2026.
Most conventional lenders cap the loan-to-cost (LTC) ratio at 75% to 80% and the loan-to-completed-value (LTCV) at 70%. Borrowers should expect to contribute 20% to 30% of total project costs as equity, depending on their experience and the project's risk profile.
Credit requirements typically start at a 620 FICO score for most programs, though borrowers above 700 will access meaningfully better rates and terms. Lenders also evaluate liquidity (at least 10% of the loan amount), net worth (ideally at or above the loan size), and the borrower's track record of completing similar projects.
Fort Worth's construction costs have stabilized relative to the pandemic-era spikes, but labor remains competitive due to the volume of active projects across the metro. Borrowers should budget conservatively and maintain a healthy contingency reserve.
Use our commercial mortgage calculator to estimate monthly interest payments during the construction phase and compare financing scenarios.
Where Are the Hottest Construction Zones Across Fort Worth?
Fort Worth's construction activity spans from its revitalizing urban core to rapidly expanding northern corridors, with each submarket presenting distinct opportunities.
Downtown and Sundance Square: More than $1 billion in active construction is reshaping the urban core. The Texas A&M Fort Worth innovation district will eventually include five buildings hosting academic programs and public-private collaborations in engineering and health. The Convention Center renovation, combined with street realignment and hotel development, is creating new commercial parcels in the heart of the city. Mixed-use infill and multifamily projects dominate this zone.
Fort Worth Stockyards: The $630 million Phase Two expansion is the largest development the historic district has seen in over a century. Beyond the anchor hotel, apartments, and commercial space, the project includes upgrades to the century-old Cowtown Coliseum. Surrounding properties are already attracting developer interest, with ancillary retail, dining, and hospitality projects in various stages of planning. You can learn more about Fort Worth financing options on our Fort Worth commercial loans page.
Panther Island and the Northside: With $50 million in public canal and park construction launching in 2026, plus private developers like Seco Ventures beginning residential planning, this area represents one of the most significant ground-up development opportunities in Texas. The creation of a new waterfront district will generate demand for multifamily, retail, dining, and hospitality construction over the next decade.
AllianceTexas and North Fort Worth: This corridor leads the entire country for the largest industrial construction pipeline. Hillwood's AllianceTexas development has 7.7 million square feet in progress, with 20 ongoing projects and plans to break ground on 1.1 million additional square feet in 2026. Wistron's $761 million investment in two AI supercomputing facilities underscores the area's pivot toward technology alongside traditional logistics and distribution.
Near Southside and Medical District: Fort Worth's medical corridor continues to expand, attracting healthcare-related construction including medical office buildings, outpatient facilities, and supporting retail and residential development. The proximity to major hospital systems creates consistent demand for new construction.
West 7th and Cultural District: This walkable urban neighborhood has become one of Fort Worth's most desirable mixed-use corridors, drawing developers focused on boutique retail, restaurant space, and upscale multifamily projects. Infill sites are competitive, and projects here command premium rents that support construction loan underwriting.
What Do Lenders Require to Qualify for a Fort Worth Construction Loan?
Lenders evaluating Fort Worth construction loan applications focus on four primary areas: the borrower's financial strength, the project's feasibility, the local market conditions, and the exit strategy.
Borrower Qualifications: A minimum 620 credit score is standard, though 680 or higher unlocks preferred rates. Lenders expect liquidity equal to at least 10% of the loan amount and a net worth that meets or exceeds the loan size. Prior construction experience is heavily weighted, especially for projects above $5 million. First-time developers may need to bring an experienced general contractor or a co-guarantor to strengthen the application.
Project Documentation: A complete set of architectural plans and specifications, a detailed line-item construction budget, a signed general contractor agreement, and all required permits must be ready before closing. Lenders order an as-completed appraisal and may require a Phase I environmental report, particularly for sites with previous industrial or commercial use.
Market Feasibility: The underwriting team evaluates comparable sales, rental absorption rates, and demand drivers in the project's submarket. Fort Worth's strong population growth, job creation (the metro has added more than 95,000 jobs in the last three years), and major infrastructure investments generally support favorable underwriting conclusions.
Exit Strategy: Borrowers must demonstrate a clear repayment plan. For-sale projects need a credible marketing plan and, ideally, pre-sale activity. Hold projects require a refinance commitment or term sheet from a permanent lender. Mixed-use developments should show projected occupancy and rental income sufficient to qualify for takeout financing.
How Does the Construction Draw Process Work in Fort Worth?
The draw process is where construction loans diverge most from standard commercial financing. Understanding this process is essential for managing cash flow and keeping your project on schedule.
After closing, you submit a draw request each time a construction milestone is completed. The request includes invoices from your general contractor and subcontractors, lien waivers for previously funded work, and updated progress photos. The lender dispatches a third-party inspector to the project site to verify that completed work matches the draw request.
Most Fort Worth lenders process draws within 5 to 10 business days. Delays in draw processing can cascade through your project timeline, affecting subcontractor payments and scheduling. Choosing a lender with local inspectors and a reputation for efficient draw administration can save weeks over the life of a project.
Fort Worth's climate introduces seasonal considerations that affect scheduling. Summer temperatures regularly exceed 100 degrees, which can slow exterior work and concrete curing. Winter ice storms, while less frequent than in northern markets, can halt construction for days at a time. Building these potential delays into your construction timeline and draw schedule helps avoid surprises.
What Mistakes Should Developers Avoid with Fort Worth Construction Loans?
Even experienced developers encounter pitfalls when financing ground-up projects. Recognizing these common errors before they happen protects both your budget and your timeline.
Underestimating soft costs: Permit fees, architectural and engineering costs, environmental reports, legal fees, and impact fees can add 15% to 25% to your total project budget. Fort Worth's development review process, while generally efficient, still requires careful budgeting for plan review fees, utility connection charges, and any special district review requirements.
Choosing rate over relationship: The lowest interest rate is meaningless if your lender takes three weeks to process draws or lacks experience with your project type. Construction lending is relationship-driven, and a lender familiar with Fort Worth's submarkets, inspectors, and permitting nuances adds value well beyond the cost of capital.
Skipping the contingency reserve: Most lenders require a 5% to 10% contingency in the construction budget. In a market where labor is competitive, material prices fluctuate, and weather events can delay progress, a healthy contingency is protection you cannot afford to skip.
Ignoring the exit timeline: Developers who wait until construction is nearly complete to arrange permanent financing risk encountering unfavorable rate conditions or tighter underwriting standards. Begin conversations with takeout lenders during the early construction phase to ensure a smooth transition.
Overlooking zoning and historic review: Projects in the Stockyards Historic District, the proposed Panther Island overlay, or other special districts face additional design and approval requirements. Failing to account for these in your timeline can delay permits and, by extension, your initial draw.
How Should You Choose the Right Construction Lender in Fort Worth?
The lender you select affects every phase of your project, from closing speed to draw efficiency to the flexibility you have when unexpected issues arise.
Local market expertise: A lender with Fort Worth experience understands the differences between building in the Stockyards district versus AllianceTexas versus Panther Island. They know local appraisers, inspectors, and contractors, and they can make faster underwriting decisions because they already understand the market fundamentals.
Draw process speed: Ask prospective lenders about their average draw turnaround time, the number of local inspectors they work with, and whether they accept electronic draw submissions. The best construction lenders process draws in under 7 business days consistently.
Structural flexibility: Look for lenders who can accommodate interest reserves, delayed equity contributions, or phased funding structures. The right loan structure can meaningfully improve your project's cash flow and investor returns.
Project type experience: A lender who has financed dozens of industrial projects in North Fort Worth will underwrite yours faster than one whose portfolio is primarily multifamily or retail. Request references from recent Fort Worth borrowers with similar project profiles.
Interest reserve options: For larger Fort Worth projects with 18 to 24 month build timelines, financing your interest payments through a built-in reserve preserves operating cash during the period when the property generates no income. This feature can represent significant savings on total out-of-pocket costs during construction.
Ready to discuss your Fort Worth construction project? Contact our team to speak with a commercial lending specialist who understands this market and can structure financing tailored to your development.
Frequently Asked Questions
What credit score do I need for a construction loan in Fort Worth?
Most Fort Worth construction lenders require a minimum 620 FICO score. Borrowers with scores above 680 qualify for better interest rates and more favorable terms. Hard money lenders may work with lower scores but charge higher rates (9% to 12%) to offset the additional risk. Your credit score is one factor among several; lenders also weigh liquidity, net worth, and construction experience.
How long does it take to close a construction loan in Fort Worth?
Conventional construction loans typically close in 45 to 60 days from application to funding. Hard money construction loans can close in as few as 10 to 15 business days. The primary variables are how quickly you can provide plans, permits, a signed general contractor agreement, environmental reports, and the lender's appraisal turnaround time.
Can I use land I already own as equity toward a Fort Worth construction loan?
Yes. If you own the land free and clear, most lenders will credit your land equity toward the down payment requirement. For example, if your land is appraised at $500,000 and the total project cost is $2 million, your land equity satisfies the 25% down payment. Some lenders also offer acquisition-and-construction loans that finance the land purchase and building costs in a single transaction.
What is the difference between loan-to-cost and loan-to-value for construction?
Loan-to-cost (LTC) measures your loan amount against the total project cost, including land, hard costs, and soft costs. Loan-to-value (LTV), or more precisely loan-to-completed-value (LTCV), compares your loan to the appraised value of the finished project. Fort Worth lenders typically cap LTC at 75% to 80% and LTCV at 70%, meaning the stricter of the two ratios determines your maximum loan amount.
Do Fort Worth construction loans require personal guarantees?
Most construction loans for projects under $10 million require full personal guarantees from the principal borrowers. Larger projects with experienced sponsors may qualify for partial guarantees or non-recourse terms, particularly through CMBS or institutional lending programs. Non-recourse construction financing is less common but available for well-qualified borrowers with proven track records and strong project fundamentals.
How does Fort Worth's lack of traditional zoning affect construction loan approval?
Fort Worth does have a zoning ordinance (unlike Houston), and all commercial projects must comply with the city's land use and building code requirements. However, Fort Worth's development-friendly regulatory environment and relatively efficient permitting process are viewed favorably by construction lenders. Projects in special districts like the Stockyards or Panther Island may require additional design review, but standard commercial projects generally move through permitting within 2 to 4 weeks.
Fort Worth's construction market is entering a period of sustained activity unlike anything the city has experienced in decades. The convergence of population growth past one million residents, billions of dollars in public infrastructure investment, and transformative private developments like the Stockyards expansion and Panther Island canal district create a development environment that will generate construction lending demand for years to come.
Whether you are developing multifamily housing near Panther Island, industrial facilities at AllianceTexas, mixed-use projects in the Stockyards district, or commercial buildings in the growing medical and cultural corridors, the right construction loan is the foundation of a successful project. Securing pre-approval before finalizing your site selection gives you a competitive edge in a market where desirable parcels attract multiple offers and sellers prioritize buyers who can demonstrate financing readiness.
Get started today by speaking with a construction lending specialist who knows the Fort Worth market and can structure financing around your project's specific requirements.