Hard money, fix and flip and DSCR loans in Houston: your questions answered

It is a mortgage on an investment property that is funded by private institutional investors, not a bank. The decision is based on the property and the deal: its value after renovation or construction, or whether its rent covers the payment. Your job history and debt-to-income ratio are not reviewed.

Houston Fix and Flip Loans is the Houston division of Optimus Capital Corp, a nationwide hard money lender that works only with real estate investors. It is run by Andrew Shanti, Senior Vice President, who has worked in lending and real estate since 2005.

Across Greater Houston: Houston, Pasadena, Pearland, Sugar Land, Katy, The Woodlands, Conroe, Baytown and the cities around them in Harris, Fort Bend, Montgomery, Brazoria and Galveston counties. Through Optimus Capital Corp we also lend in other states.

Fix and flip loans, DSCR loans for rental property, ground-up construction loans, mid-rehab and completion loans, rental portfolio loans, and commercial loans on multifamily, hospitality, office, industrial and retail property.

Choose a lender that funds most of the purchase and all of the renovation, pays draws promptly, and underwrites flood risk, foundation work, insurance and Texas property taxes realistically. We lend up to 90% of the purchase and 100% of the rehab on terms of 6 to 24 months. See investment property loans in Houston.

It means the borrower will not live in the property. Flips, rentals and new builds for sale are non-owner-occupied, and they are financed with business-purpose loans. Every loan we make is on non-owner-occupied property.

No. We lend on investment property only. The exception is commercial property occupied by the owner’s business. For a primary residence, a conventional NMLS-licensed mortgage broker is the right place to go.

As a rule, no, except on large commercial loans. The one cost before closing on most loans is the appraisal, which you pay to the appraisal company.

Programs begin at a 600 score. Fix and flip loans start at 600 with reduced leverage, while the best terms, 90% of purchase and 100% of rehab, are for scores of 720 or higher. Rental loans are available at 600 with up to 70% loan-to-value.

No. We look at three things: enough cash to buy and carry the property, a property that can cover its payment now or once the work is finished, and a credit record that shows debts are paid on time.

No. These are business-purpose loans and are not reported on personal credit like a conventional mortgage.

As many as your deals support. There is no limit on the number of properties we will finance for one investor.

Yes. We will need the certificate of formation, the IRS EIN letter, a signed company agreement showing each member’s share and, if the LLC is over a year old, a certificate of account status or good standing.

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.

A DSCR loan is approved on the debt service coverage ratio: the rent divided by the full monthly payment. We prefer 1.0 or higher. Strong borrowers can qualify below 1.0 with lower leverage, and a no-DSCR program exists at a higher rate.

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.

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.

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.

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.

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.

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.

Yes, through our rental loan programs.

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.

In Texas, a title company handles the closing and issues the title policy. Have yours chosen when you apply.

The minimum is $75,000. The maximum is more than $10 million.

From 6 months to 30 years. Fix and flip loans are 6 to 24 months with interest-only payments. Rental loans are fixed for 5 to 30 years.

Not on fix and flip loans. Rental loans come with a 3-year or 5-year prepayment penalty, the 5-year usually priced about 0.25 to 0.5% lower, or with no penalty at a higher rate.