Where we lend: Houston and Greater Houston

Anywhere in Greater Houston

You do not need to be in one of those markets. We lend across Harris, Fort Bend, Montgomery, Brazoria and Galveston counties and the surrounding area, and through Optimus Capital Corp we also finance property in other states.

What to know about lending here

• Flood risk. Flooding is the defining risk in Houston. Since 2018, new homes and substantially improved homes inside the city’s 100-year and 500-year floodplains must be built 2 feet above the 500-year flood elevation, and many houses that flooded in Hurricane Harvey or earlier storms carry a history buyers and insurers will ask about. Texas sellers must disclose flood history, and landlords must tell tenants whether a rental is in a 100-year floodplain and whether it has flooded in the past five years. Check the flood maps, the elevation and the flood history before you make an offer.
• Property tax. Texas has no state income tax, so local governments rely on property tax. Combined rates in Harris County are often 2% to 2.5% of value, and in suburbs served by a municipal utility district (MUD) they can reach 3% or more. Investment property gets no homestead exemption. For the 2024 to 2026 tax years, the taxable value of non-homestead property worth $5 million or less can rise no more than 20% a year, but the limit resets when the property is sold, so a new buyer is taxed on full market value.
• Closing costs. Texas has no state or local transfer tax and no mortgage recording tax, so closing costs are lower than in many states. Title insurance premiums are set by the Texas Department of Insurance, and closings are handled by a title company.
• No zoning. Houston is the largest city in the country without a zoning code. What you can build is set instead by deed restrictions, which the city enforces, and by its development rules on lot size, setbacks and parking. That is why townhomes on subdivided lots are common inside the Loop. Read the deed restrictions before you buy a lot or plan an addition.
• Foundations. The Gulf Coast clay under much of Houston swells when wet and shrinks when dry, so foundation movement is common in older slab and pier-and-beam houses. Get a foundation inspection or an engineer’s report before you set the rehab budget.
• Insurance. Hurricane wind, hail and flood drive insurance costs across the Houston area, and flood insurance is a separate policy. In coastal areas such as Galveston and parts of southeast Harris County, wind coverage often comes from the Texas Windstorm Insurance Association, which requires inspected work. Get insurance quotes, including flood, before you make an offer.
• Short-term rentals. Houston has no zoning, so short-term rentals are not banned by neighborhood, but since January 1, 2026 every short-term rental in the city must hold a city registration, renewed each year for $275, and pay state and city hotel occupancy tax, with fines of up to $500 a day for violations. Many subdivisions and master-planned communities restrict short stays in their deed restrictions, and suburbs such as Sugar Land, Katy and League City have their own rules. We underwrite on long-term rent unless the address can legally host short stays and the numbers work without them.
• Rental rules. Texas law bars cities from adopting rent control, so rents follow the market, and Houston has no citywide rental registration for long-term leases. Texas landlord rules, such as the flood disclosure in every residential lease, still apply.