Available home loans to demo and rebuild?

[Montrel LaCour-Roy]

I have a friend that lives in Houston, Tx. They have been slowing working on their home for years. It is a 2 Bed 1 Bath cinders. The recent freeze did a lot of damage to their plumbing to their home, and at this point they feel like the home isn't worth continually fixing. This has been a major setback to their progress, and at this point he and his family would just like to start over from the ground up. 

Here is his inquiry for you all "I want to see if it is possible to get a loan in order to demo our home and build 2 small townhomes on our land". Would anyone have answers and specific places for him to look into getting a loan like this?