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Hard money and fix and flip loans in Katy, Texas
Loans for build-to-rent homes, newer suburban rentals and renovations in Katy.
The Katy market for investors
Katy, west of Houston along I-10 and the Grand Parkway, is one of the fastest-growing parts of the metro area. Highly rated schools and large master-planned communities such as Cinco Ranch draw families, which keeps rental demand strong.
Investors build and hold new homes as rentals, buy newer houses in subdivisions to rent, and renovate older homes in Old Katy.
Areas investors ask about
- Cinco Ranch and Grand Lakes: established master-planned communities
- North and west Katy: new subdivisions and build-to-rent
- Old Katy: older homes near the historic downtown
Plan for these on a Katy 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.
- Many newer subdivisions sit inside a municipal utility district (MUD), which levies its own property tax to pay for water, sewer and drainage. Add the MUD rate to the county, city and school rates when you underwrite.
- 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.
- Most homes in master-planned communities have association dues, which count in the payment, and some deed restrictions limit short-term rentals.
- 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.
Loans available in Katy
| 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 |
Katy hard money loans: common questions
Yes. Build with a construction loan, then refinance into a DSCR rental loan once the home is leased.
Many sit inside municipal utility districts, which add their own tax to the county, city and school rates.
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 Katy?
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.