New Construction Loan vs. Home Equity Loan Central Texas

[Abraham Castillo]

Hello to all,

My parents are looking to build a new home (2500 sq. ft.) in Central Texas on a property of 2.5 acres. I had previously suggested a home equity loan on their current home, valued at 216K (according to 2019 Tax-assessed value), to start the construction proccess. But now it has been brought to my attention that their is new construction loans available.

What are recommendations?

Thank you in advance!