A retired couple says they paid more than $156,000 to build their dream home in Mercedes, but the project remains unfinished after more than a year.

Ana and Jose Salgado signed a contract with Honora Construction on July 2025 to build the home for $160,000. The contract called for the home to be completed by November 2025, but that deadline passed without the work being done.

"We’re stressed out, depressed… it's awful, because I wasn't expecting this," Ana Salgado said.

The Salgados are originally from California. They moved to the Rio Grande Valley to spend their retirement in a dream home.

"It's been 14 months, and this house still isn't finished," Ana Salgado said.

The couple says the home is still missing key elements before they can move in.

"This house is missing cabinets. It still needs to have the pantry finished. It needs the interior plumbing, everything inside. It's missing about eight columns, and it needs the floor and the outdoor bathroom finished," Jose Salgado said.

The Salgados say their contractor told them ICE raids are making it difficult to keep workers on job sites. Channel 5 News reached out to Honora Construction, and the owner confirmed ICE raids have caused workers not to show up.

The company says it is looking for other subcontractors to finish the home and still intends to reach a turnkey completion with the Salgados.

Jose Salgado said he sent the company a letter on July 24, 2026, with a deadline of his own.

"I gave him 30 days to finish the work or abandon it," Jose Salgado said.

A spokesperson for Honora Construction says the company is is aware of the letter. The couple is worried about what happens if the work doesn't get done.

"Where are we going to get the $40,000 or $50,000 we need to finish all this?" Jose Salgado said.

The Better Business Bureau of South Texas is advising consumers to ask the right questions before signing a contract with a builder.

"If those subcontractors that the builder cannot find because of ICE, well, what other alternative do you have? What other backup do you have? Those are questions that consumers really need to ask the builder," Better Business Bureau of South Texas President Hilda Martinez said.

The BBB also recommends homeowners hold off on payments until they see progress.

"As far as a consumer, what I recommend for them to do is not continue giving the money until you see the progress being completed in that home," Martinez said.

Construction across the Valley is also slowing down more broadly. The South Texas Builders Association says job sites across the Valley are facing major delays because of ICE raids. Last month, the association pushed for immigration policy changes and recommended contractors give clients honest answers about timelines. The group also offers legal help for anyone dealing with real estate issues.

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