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Hard money and fix and flip loans in Baytown, Texas
Financing for workforce rentals and lower-priced houses to renovate in Baytown.
The Baytown market for investors
Baytown sits east of Houston on Galveston Bay, home to one of the largest refining and petrochemical complexes in the country, which keeps a large workforce in the area.
Investors buy houses at lower prices, renovate them for resale or hold them as long-term rentals for plant and port workers.
Areas investors ask about
- Central Baytown: older, lower-priced houses
- North Baytown and Highlands: newer homes and new construction
- Near the bay: homes with higher flood and wind risk to price in
Plan for these on a Baytown deal
- Investment property gets no homestead exemption, and combined property tax rates are often 2% to 2.5% of value, more inside a municipal utility district. For 2024 to 2026 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 sells. Budget with full market value.
- Texas has no transfer tax and no mortgage recording tax, so closing costs are mostly title insurance, at rates set by the state, and recording and lender fees.
- Check the FEMA flood zone, the elevation and the flood history before you make an offer. Texas sellers must disclose past flooding, and landlords must disclose flood risk in every lease.
- Areas near the bay can need windstorm coverage from the Texas Windstorm Insurance Association, which requires inspected work. Wind, hail and flood drive insurance costs. Get quotes, including flood, before you make an offer.
- Clay soil makes foundation movement common in older houses. Get a foundation inspection before you set the rehab budget.
Loans available in Baytown
| Program | Use it for | Top leverage |
|---|---|---|
| DSCR rental loans | Purchase or refinance of single-family rentals, duplexes, townhomes and small multifamily | 85% loan-to-value to buy, 80% on a cash-out refinance |
| Ground-up construction loans | Building a home, a duplex, a build-to-rent home or a small apartment building, lot included | 90% of cost for experienced builders, up to 70 to 75% of the finished value |
| Fix and flip loans | Purchase plus renovation of a property you intend to sell | 90% of the purchase price and 100% of the rehab, up to 70 to 75% of after-repair value |
| Portfolio and commercial loans | A group of rentals under one note, or multifamily and commercial property | 80% on a portfolio purchase; commercial priced per deal |
Baytown hard money loans: common questions
Yes. We finance fix and flips, rentals and construction across Baytown and east Harris County.
Yes. A DSCR loan is approved on the market rent, with no review of your personal income.
Fix and flip loans average up to 21 days and can close in about 7 days when title and insurance are ready. Rental and DSCR loans take about 30 days, appraisal included. Closings are handled by a Texas title company.
Looking at a property in Baytown?
Send the address, the price and what you plan to do with the property. We will reply with the leverage and pricing that fit your deal.