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Hard money and fix and flip loans in Houston, Texas
Loans for bungalow and ranch house renovations, inner-Loop townhomes, rentals and infill new construction across the City of Houston.
The Houston market for investors
Houston is the fourth-largest city in the country, with a large economy built on energy, health care, the Texas Medical Center and the Port of Houston. Its housing ranges from 1920s bungalows in the Heights and Eastwood to postwar ranch houses across Spring Branch, Oak Forest and Sharpstown and new townhomes on subdivided lots inside the Loop.
Investors renovate dated houses for resale, hold single-family rentals and duplexes, and build townhomes and new houses on infill lots. With no zoning code, deed restrictions and floodplain rules decide what a lot can hold, so a local plan helps.
Neighborhoods investors ask about
- The Heights, Woodland Heights and Montrose: higher-priced bungalows, some in historic districts
- Eastwood, Magnolia Park and the East End: older homes east of downtown
- Near Northside and Independence Heights: lower entry prices and infill lots
- Spring Branch, Oak Forest and Garden Oaks: 1950s ranch houses to renovate or rebuild
- Sharpstown, Alief and Sunnyside: lower-priced houses to renovate and rent
Plan for these on a Houston 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.
- Since 2018, new 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. 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.
- Since January 2026, every short-term rental in the city must register with the city each year and pay hotel occupancy tax. Underwrite on long-term rent unless the address can legally host short-term rentals.
- Houston has no zoning, but deed restrictions limit what can be built in many neighborhoods, and the city enforces them.
- Exterior work in historic districts such as the Heights, Freedmen’s Town and Old Sixth Ward needs a certificate of appropriateness.
- Clay soil makes foundation movement common in older houses. Get a foundation inspection before you set the rehab budget.
Loans available in Houston
| 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 |
Houston hard money loans: common questions
Yes. Houston is our focus market. We finance fix and flips at up to 90% of purchase and 100% of rehab, rentals at up to 85% loan-to-value, and ground-up construction at up to 90% of cost for experienced builders.
Yes. A construction loan can cover the lot and the build at up to 90% of cost for experienced builders, within 70 to 75% of the finished value.
You can if the deed restrictions allow it, but the property must be registered with the city each year. We underwrite on long-term rent unless short stays are clearly allowed.
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 Houston?
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.