# Houston Fix and Flip Loans: full site content > Hard money, fix and flip and DSCR rental loans for Houston and Greater Houston real estate investors. The Houston division of Optimus Capital Corp (https://www.optimuscapitalcorp.com/), a relationship-driven lender for real estate investors founded in 2015. Business-purpose loans on non-owner-occupied investment property only. Phone (954) 598-4564. Email andrew@optimuscapitalcorp.com. Last updated 2026-11-06. --- Source: https://houstonfixandfliploans.com/ Title: Hard Money & Fix and Flip Loans in Houston, TX Summary: Hard money and fix and flip loans in Houston and the Gulf Coast: 90% of purchase, 100% of rehab. DSCR rental loans to 85% LTV with no tax returns. # Hard money and fix and flip loans in Houston Houston Fix and Flip Loans finances house renovations, single-family rentals, duplexes, townhomes, build-to-rent homes, small multifamily and new construction across Houston and the surrounding Gulf Coast region. Fix and flip loans cover up to 90% of the purchase and 100% of the rehab, and rental loans are approved on the rent, not your tax returns. [Get pre-qualified](https://houstonfixandfliploans.com/get-pre-qualified/) Call (954) 598-4564 The Houston division of Optimus Capital Corp. Business-purpose loans on non-owner-occupied investment property only. ## Loan terms at a glance Flip: purchase financed | up to 90% Flip: rehab financed | up to 100% Flip: limit on after-repair value | 70 to 75% Rental purchase | up to 85% LTV Rental cash-out | up to 80% LTV Ground-up construction | up to 90% of cost Minimum credit score | 600 Loan amounts | $75K to $10M+ Top fix and flip leverage is for credit scores of 720 and up, and a flip loan can close in about 7 days. Rental loans are approved on the property’s rent and take about 30 days. Construction at 90% of cost is for experienced builders. 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, who has worked in lending and real estate since 2005. We lend only on non-owner-occupied property: flips, rentals and new builds. [Investment property loans in Houston](https://houstonfixandfliploans.com/investment-property-loans-houston/) [Meet Andrew](https://houstonfixandfliploans.com/about-us/) ## Fix and flip loans built for Houston houses Greater Houston is full of houses built from the 1920s to the 1980s: bungalows in the Heights and Eastwood, postwar ranch houses in Oak Forest, Spring Branch and Garden Oaks, and 1960s to 1980s homes in Meyerland, Sharpstown, Alief and Pasadena. A dated house with new systems, a new kitchen and a sound foundation can sell for far more. Our fix and flip loans fund most of the purchase and all of the work. ### Buy and renovate Up to 90% of the purchase price and 100% of the rehab budget at a 720+ credit score, limited to 70 to 75% of the after-repair value. Scores down to 600 qualify at lower leverage. ### Interest only, no penalty Terms of 6 to 24 months with interest-only payments. Pay the loan off the day you sell, with no prepayment penalty. ### Experienced flippers Investors with 5 or more flips in the past 2 years can close without an inspection or appraisal, up to 75% of the after-repair value. Keeping the house instead? When the work is finished, a [DSCR rental loan](https://houstonfixandfliploans.com/dscr-rental-loans/) can replace the flip loan, with a cash-out refinance at up to 80% loan-to-value. [See fix and flip terms](https://houstonfixandfliploans.com/fix-and-flip-loans/) [Get pre-qualified](https://houstonfixandfliploans.com/get-pre-qualified/) ## Everything we finance Every loan is a business-purpose loan secured by investment real estate. Terms run from 6 months to 30 years. Program | Use it for | Top leverage | Approved on [Fix and flip loans](https://houstonfixandfliploans.com/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 | The deal: price, rehab budget and resale value [DSCR rental loans](https://houstonfixandfliploans.com/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 | Whether the rent covers the payment [Ground-up construction loans](https://houstonfixandfliploans.com/new-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 | Budget, finished value and your building record [Mid-rehab loans](https://houstonfixandfliploans.com/hard-money-loan-programs/#mid-rehab) | Completing a renovation or build that has run short of funds | The current as-is value plus the cost to finish | As-is value and remaining scope [Portfolio loans](https://houstonfixandfliploans.com/hard-money-loan-programs/#portfolio) | A group of rentals under one note and one payment | 80% to buy or refinance, 75% on a cash-out | Rent across the whole group [Commercial loans](https://houstonfixandfliploans.com/hard-money-loan-programs/#commercial) | Multifamily, hospitality, office, industrial and retail | Priced per deal | The property and its income Actual leverage depends on credit, track record, property type and location. Loans start at $75,000. ## From first call to closing - Tell us about the dealAddress, price, the renovation budget or the rent it earns, and whether you plan to sell or hold. A call or the short form is enough. - See your termsWe run the numbers and tell you the leverage and pricing available. As a rule there is nothing to pay upfront. - Appraisal and reviewThe appraisal is ordered and you pay the appraiser directly. Investors with 5 or more flips in the past 2 years can skip the inspection and appraisal on a flip. - Close with your title companyRental loans take about 30 days, appraisal included. Fix and flip loans average up to 21 days and can close in about 7 days once title and insurance are ready. In Texas, closings are handled by a title company. ## What clients say about Andrew Andrew Shanti with Optimus Capital has been exceptional to work with. Over the past several years, I have closed numerous transactions with Andrew on behalf of sophisticated real estate investors, and his performance has been consistently outstanding. [...] Every transaction I have been involved with Andrew at Optimus Capital has closed, including many requiring thoughtful structuring and creative solutions due to their challenging nature. Maria McKee, Premier Sotheby’s International Realty, Google review of Optimus Capital Just completed a rental portfolio refi with Optimus. Andrew and Daisy were amazing to work with and helped me work through every challenge quickly and with clear understanding. Zachary Hagan, Google review of Optimus Capital These reviews were left for Optimus Capital, our parent company, about Andrew Shanti. [Read all of the Optimus Capital reviews on Google](https://www.google.com/maps?cid=16792545801423268972). ## Property and borrowers we work with ### Houston-area investment property - Single-family houses to renovate and resell - Single-family rentals and build-to-rent homes - Duplexes, triplexes and fourplexes - Townhomes and condos, including non-warrantable condos - Small multifamily and apartment buildings - New construction and infill lots ### Commercial property - Multifamily - Hospitality - Professional office - Industrial - Retail shopping centers ### Who can borrow - New investors and seasoned ones - Credit scores of 600 and above - Out-of-state owners and LLCs - Foreign nationals, on rental loans - Investors with any number of existing loans We do not finance a home you will live in. For a primary residence, talk to a conventional mortgage broker. ## Lending across Greater Houston We finance investment property in Houston and across Harris County, in Fort Bend County to the southwest, Montgomery County to the north, and Brazoria and Galveston counties to the south. - [Houston, TX](https://houstonfixandfliploans.com/houston-tx/) - [Pasadena, TX](https://houstonfixandfliploans.com/pasadena-tx/) - [Pearland, TX](https://houstonfixandfliploans.com/pearland-tx/) - [Sugar Land, TX](https://houstonfixandfliploans.com/sugar-land-tx/) - [Katy, TX](https://houstonfixandfliploans.com/katy-tx/) - [The Woodlands, TX](https://houstonfixandfliploans.com/the-woodlands-tx/) - [Conroe, TX](https://houstonfixandfliploans.com/conroe-tx/) - [Baytown, TX](https://houstonfixandfliploans.com/baytown-tx/) - [All service areas](https://houstonfixandfliploans.com/areas-we-serve/) ## Questions investors ask us ### Who is the best lender for a fix and flip in Houston? Look for a lender that funds most of the purchase and all of the renovation, closes quickly, and builds flood risk, Texas property taxes, foundation work and insurance into the plan. We lend up to 90% of the purchase and 100% of the rehab, and lend only on investment property. [How to choose a lender](https://houstonfixandfliploans.com/investment-property-loans-houston/). ### Can I finance a Houston house to rent on Airbnb? 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. ### Do you check my income? No. A flip or construction loan is approved on the deal, and a rental loan on the rent the property earns. There is no employment or debt-to-income review. ### What credit score do you need? Programs begin at a 600 score. The best fix and flip terms are for scores of 720 and up, and a rental purchase at 600 is limited to 70% loan-to-value. ### Do you lend in the suburbs? Yes. We lend across Harris, Fort Bend, Montgomery, Brazoria and Galveston counties, including Pasadena, Pearland, Sugar Land, Katy, The Woodlands, Conroe and Baytown. ### How fast can a loan close? Rental loans take about 30 days, appraisal included. Fix and flip loans average up to 21 days and can close in about 7 days once title and insurance are ready. [See every question](https://houstonfixandfliploans.com/hard-money-loan-questions/) [Get a quote](https://houstonfixandfliploans.com/get-pre-qualified/) ## Have a Houston deal in mind? Run it by us. 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. - Call (954) 598-4564 - Email andrew@optimuscapitalcorp.com - [Get pre-qualified online](https://houstonfixandfliploans.com/get-pre-qualified/) --- Source: https://houstonfixandfliploans.com/investment-property-loans-houston/ Title: Investment Property Loans Houston TX | Non-Owner-Occupied Summary: Non-owner-occupied property loans in Houston and Greater Houston: fix and flip, DSCR rental and construction financing. No tax returns, from 600 credit. [Home](https://houstonfixandfliploans.com/) / Investment property loans # Investment property loans in Houston Financing for non-owner-occupied real estate: houses to renovate and resell, single-family rentals, duplexes, townhomes, build-to-rent homes, small multifamily and new builds across Houston and Greater Houston. Investment property is the only kind of lending we do. [Get pre-qualified](https://houstonfixandfliploans.com/get-pre-qualified/) Call (954) 598-4564 ## Non-owner-occupied loan terms Fix and flip | 90% purchase, 100% rehab Rental purchase | up to 85% LTV Rental cash-out | up to 80% LTV Ground-up construction | up to 90% of cost Credit scores from | 600 Loan amounts | $75K to $10M+ Top leverage depends on credit, track record and property type. We do not finance a home you will live in. ## What a non-owner-occupied loan is A non-owner-occupied property is one the borrower does not live in: a house bought to renovate and sell, a rental leased by the year, a duplex, or a lot where a house will be built. Lenders treat these as business-purpose loans, and the rules differ from the mortgage on a primary residence. Houston Fix and Flip Loans lends only on non-owner-occupied property. We are the Houston division of Optimus Capital Corp, a nationwide lender that works only with real estate investors, and the division is run by Andrew Shanti, who has worked in lending and real estate since 2005 as a principal, executive and investor. ## How to choose a lender for a Houston investment property The right lender depends on what you plan to do with the property. Three kinds of lender finance investment real estate, and each one approves the loan on something different. Lender type | Approves the loan on | Fits best Bank or conventional mortgage | Your tax returns, employment and debt-to-income ratio | Borrowers with strong documented income and only a few financed properties DSCR lender | Whether the rent covers the payment | Long-term rentals, self-employed investors, LLC borrowers and investors with many loans Hard money or bridge lender | The deal: price, budget and finished value | Fix and flips, build-to-rent, ground-up construction and purchases that have to close quickly We offer the second and third kinds. For a home you will live in, a conventional mortgage broker is the right place to go. ## Questions to ask before you pick a lender Houston deals have their own costs and risks. These questions sort out quickly who can close your deal. - Will you fund the whole renovation? We finance up to 100% of the rehab budget at a 720+ score, paid in draws as work is finished. - Do you underwrite property tax correctly? 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. - Do you account for 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. - Do you account for foundations and insurance? 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. 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. - Do you understand the rental rules? 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. - Will you check my personal income? We do not. There are no tax returns and no employment or debt-to-income review. - Can I close in an LLC, and from out of state? Yes. We lend to LLCs and to out-of-state owners, and to foreign nationals on rental loans. - How fast can you close? Rental loans take about 30 days, appraisal included. Fix and flip loans average up to 21 days and can close in about 7 days once title and insurance are ready. ## What we finance in Greater Houston - [Fix and flip loans](https://houstonfixandfliploans.com/fix-and-flip-loans/): up to 90% of the purchase price and 100% of the rehab at a 720+ credit score. - [DSCR rental loans](https://houstonfixandfliploans.com/dscr-rental-loans/) for single-family rentals, duplexes and townhomes: up to 85% loan-to-value to buy and 80% on a cash-out refinance, fixed for 5 to 30 years. - [Ground-up construction loans](https://houstonfixandfliploans.com/new-construction-loans/): up to 90% of cost for experienced builders, with the lot included. - [Mid-rehab, portfolio and commercial loans](https://houstonfixandfliploans.com/hard-money-loan-programs/) for projects that need capital to finish, groups of rentals, and multifamily or commercial property. For neighborhood notes and local rules, see [Houston](https://houstonfixandfliploans.com/houston-tx/), [Katy](https://houstonfixandfliploans.com/katy-tx/) and our other [market pages](https://houstonfixandfliploans.com/areas-we-serve/). ## Investment property loans: common questions ### Who is the best lender for an investment property in Houston? It depends on the deal. For a renovation or a new build, look for a hard money lender that funds most of the purchase and the work and closes quickly. For a rental you will hold, look for a DSCR lender that qualifies the property on its rent and underwrites Texas property taxes, flood risk and insurance realistically. Houston Fix and Flip Loans does both and lends only on non-owner-occupied property. It is run by Andrew Shanti, who has worked in lending and real estate since 2005. ### What is a non-owner-occupied loan? It is a loan on a property the borrower will not live in, such as a flip, a rental or a new build for sale. It is a business-purpose loan, approved on the property and the deal, and it is not reported on personal credit like a conventional mortgage. ### Can I get an investment property loan without tax returns? Yes. A DSCR rental loan is approved on whether the rent covers the payment, and a construction or fix and flip loan on the deal. We do not verify income or employment. ### How much do I need to put down on a Houston rental? As little as 15% with strong credit, since we lend up to 85% loan-to-value on a rental purchase. At a 600 credit score the limit is 70%, so plan on 30%. Texas has no transfer or mortgage recording tax, which keeps closing costs down. ### Do you lend on second homes or primary residences? No. We lend on investment property only, and the property cannot be a home you will live in. For a primary residence, talk to a conventional mortgage broker. ### Do you lend outside Houston? Yes. We lend across Greater Houston, including Pasadena, Pearland, Sugar Land, Katy, The Woodlands, Conroe and Baytown, and through Optimus Capital Corp in other states. ## Loan programs at a glance Program | Use it for | Top leverage [DSCR rental loans](https://houstonfixandfliploans.com/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](https://houstonfixandfliploans.com/new-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](https://houstonfixandfliploans.com/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](https://houstonfixandfliploans.com/hard-money-loan-programs/#portfolio) | A group of rentals under one note, or multifamily and commercial property | 80% on a portfolio purchase; commercial priced per deal Actual leverage depends on credit, track record, property type and location. Loans start at $75,000. ## Buying an investment 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. - Call (954) 598-4564 - Email andrew@optimuscapitalcorp.com - [Get pre-qualified online](https://houstonfixandfliploans.com/get-pre-qualified/) --- Source: https://houstonfixandfliploans.com/dscr-rental-loans/ Title: DSCR Loans in Houston | Rental Loans up to 85% LTV Summary: DSCR loans for Houston rentals: up to 85% LTV to buy, 80% cash-out, single-family and duplexes, no tax returns. From 600 credit. About 30 days. [Home](https://houstonfixandfliploans.com/) / [Loan programs](https://houstonfixandfliploans.com/hard-money-loan-programs/) / DSCR rental loans # DSCR loans for Houston rental property Long-term financing approved on what the property earns. Single-family rentals, duplexes to fourplexes, townhomes and build-to-rent homes, with no tax returns or employment check. [Get pre-qualified](https://houstonfixandfliploans.com/get-pre-qualified/) Call (954) 598-4564 ## DSCR loan terms To buy | up to 85% LTV Cash-out refinance | up to 80% LTV Credit scores from | 600 Fixed terms | 5 to 30 years Prepayment choices | 3-year, 5-year or none Typical closing | about 30 days At a 600 score the limit is 70% loan-to-value. Stronger credit qualifies for up to 85% on a purchase. ## DSCR in plain terms DSCR is short for debt service coverage ratio. It answers one question: does the rent pay the mortgage? If it does, the loan can be approved without looking at your personal income. DSCR = monthly rent ÷ monthly payment. The payment counts principal, interest, property taxes, insurance and any homeowners association fee. Rent | Payment | DSCR | Reading $2,860 | $2,200 | 1.30 | Income is 30% above the payment $2,200 | $2,200 | 1.00 | Income equals the payment $1,980 | $2,200 | 0.90 | Income is short; expect less leverage or a higher rate Illustrative figures. We prefer a ratio of 1.0 or higher. A strong borrower can qualify under 1.0 with lower leverage, and there is a no-DSCR option up to 75% loan-to-value at a higher rate. ## Why taxes and insurance matter so much in Texas - 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. - 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. - HOA fees. Most master-planned communities in Katy, Cypress, The Woodlands and Pearland have association dues. They count in the payment. - Flood. 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. Use the tax bill at full market value, not the seller’s capped or homestead figure, and get a real insurance quote before you make an offer. Those numbers decide whether many Houston rentals clear 1.0. ## Which rent counts - Long-term rentals. Year-long leases are the core of the market, with demand from the region’s large and growing workforce in energy, health care and the port. We use the lease or the market rent from the appraisal. - Duplexes to fourplexes. Every unit’s rent counts. - 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. ## Loan options - Fixed terms from 5 to 30 years. The 10/1 interest-only and the 30-year fully amortized loan are chosen most often. - Qualifying on the interest-only payment is available. - A 3-year or 5-year prepayment penalty. The 5-year option usually prices about 0.25 to 0.5% lower. No penalty is available at a higher rate. - One property or a whole [portfolio](https://houstonfixandfliploans.com/hard-money-loan-programs/#portfolio). ## Refinancing after a renovation or a build If you renovate or build a property and decide to keep it, a DSCR loan replaces the short-term fix and flip or construction loan with long-term debt. A cash-out refinance at up to 80% loan-to-value can hand back much of the cash you put in. Texas restricts cash-out loans on homesteads, but those rules do not apply to investment property. ## Documents we ask for - Loan application - Signed purchase contract, or your original settlement statement for a refinance - The lease, or market rent from the appraisal - Two months of bank statements - Insurance and title contacts, and someone to let the appraiser in - For a property in an association: the HOA dues and any special assessments - For an LLC: certificate of formation, EIN letter and company agreement The full list is in our [hard money loan document checklist](https://houstonfixandfliploans.com/hard-money-loans-document-list/). ## DSCR loans: common questions ### What DSCR do you require? We prefer 1.0 or higher, which means the rent covers the full payment. Strong borrowers can qualify below 1.0 with lower leverage, and a no-DSCR program is available up to 75% loan-to-value at a higher rate. ### Can I qualify with Airbnb income in Houston? Usually we underwrite on long-term rent. Houston requires every short-term rental to register with the city, and many deed restrictions ban short stays. Ask us about a specific address. ### Why did my DSCR come in lower than I expected? Most often it is property tax or insurance. A new owner is taxed on full market value without a homestead exemption, and wind, hail and flood coverage is expensive in the Houston area. In a MUD, the district’s tax adds to the bill. ### Can I do a cash-out refinance on a Texas rental? Yes, up to 80% loan-to-value. Texas’s special cash-out rules apply to homesteads, not to investment property. ### What credit score is needed for a DSCR loan? The minimum is 600, at up to 70% loan-to-value. Higher scores qualify for up to 85% of the purchase price. ### Do you look at my tax returns or job? No. A DSCR loan is approved on the property’s rental income. There is no employment, tax return or debt-to-income review. ### Does the loan appear on my personal credit? No. These are business-purpose loans and are not reported on your personal credit like a conventional mortgage. There is no cap on how many properties we will finance for you. ## Buying or refinancing a Houston rental? 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. - Call (954) 598-4564 - Email andrew@optimuscapitalcorp.com - [Get pre-qualified online](https://houstonfixandfliploans.com/get-pre-qualified/) --- Source: https://houstonfixandfliploans.com/new-construction-loans/ Title: Construction Loans in Houston | Up to 90% of Cost Summary: Construction loans in Houston for new homes, townhomes, build-to-rent and infill. Up to 90% of cost, lot included, first-time builders welcome. [Home](https://houstonfixandfliploans.com/) / [Loan programs](https://houstonfixandfliploans.com/hard-money-loan-programs/) / Construction loans # Ground-up construction loans in Houston Financing to build from the ground up, lot included: new homes, inner-Loop townhomes, build-to-rent houses, duplexes, infill rebuilds and small apartment buildings. Experienced builders can borrow up to 90% of the total project cost. [Get pre-qualified](https://houstonfixandfliploans.com/get-pre-qualified/) Call (954) 598-4564 ## Construction loan terms Experienced builders | up to 90% of cost Standard | up to 85% of cost Limit on finished value | 70 to 75% Lot cost financed | up to 70% First-time builders | programs available Smallest loan | $75,000 Builders with fewer recent projects, and smaller markets, are usually limited to 80% of cost. ## Two limits decide the loan Loan-to-cost measures the loan against what you spend on the lot and the build. Loan-to-value measures it against what the finished property will be worth. A construction loan has to fit inside both. - The lot: up to 70% of what you paid can be financed. - The whole project: normally up to 85% of cost. - Experienced builders in major markets: up to 90% of cost. - Less active builders and smaller markets: usually up to 80% of cost. - Always: no more than 70 to 75% of the finished value. ### Example Infill lot | $120,000 Construction budget | $380,000 Total cost | $500,000 Finished value | $720,000 85% of cost | $425,000 90% of cost, experienced builder | $450,000 75% of finished value, the ceiling | $540,000 For illustration only. Both loan amounts sit under the $540,000 ceiling. ## Who qualifies Your record sets your leverage. Builders with completed projects get the most. First-time builders are not shut out: we have programs for them too. ## Building in Houston - Flood elevation. Inside the city’s 100-year and 500-year floodplains, a new home must be built 2 feet above the 500-year flood elevation. That affects fill, foundation and design, and the cost. - Soil and foundations. Gulf Coast clay means new slabs are usually engineered for the site, often after a soil report. - Permits. The Houston Permitting Center reviews city projects, and each suburb and county runs its own office. Plan the schedule, and the loan term, around a realistic permit date. - 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. - Build-to-rent. New houses built to hold as rentals are common in the suburbs. When the house is finished and leased, a DSCR loan can take out the construction loan. - Historic districts. Houston has historic districts in the Heights, Montrose, Freedmen’s Town, Old Sixth Ward and Woodland Heights, among others. Exterior work, additions and demolitions in a historic district need a certificate of appropriateness from the Houston Archaeological and Historical Commission as well as a building permit. ## From construction loan to rental loan Many investors build to keep. When the property is finished and leased, a [DSCR rental loan](https://houstonfixandfliploans.com/dscr-rental-loans/) pays off the construction loan and replaces it with long-term debt. ## Finishing a stalled build A construction completion loan lends against the project as it stands today and adds what is needed to finish it. ## Documents we ask for - Loan application and personal financial statement - A line-item construction budget with a clear scope of work. Draws are paid against it - Plans, drawings, soil report if you have one, and permit status - Your general contractor’s details, insurance and recent completed projects - Your own projects from the last 2 years, with settlement statements - Two months of bank statements showing reserves - Insurance and title contacts The full list is in our [hard money loan document checklist](https://houstonfixandfliploans.com/hard-money-loans-document-list/). ## Construction loans: common questions ### How much of a new build will you finance in Houston? Normally up to 85% of the total project cost, and up to 90% for experienced builders in major markets. The loan must also stay within 70 to 75% of the finished value. ### Is the lot included? Yes. Up to 70% of the lot cost can be financed, as long as the total loan stays inside the loan-to-cost limit. ### Do you finance build-to-rent homes? Yes. Build with a construction loan, then refinance into a DSCR rental loan once the home is leased. ### Will you lend to someone building for the first time? Yes, we have first-time builder programs. Leverage rises with a record of completed projects. ### Can you fund a build that has stopped part-way? Yes. A construction completion loan is based on the current as-is value plus the cost to finish. ## Have a lot and a set of plans? 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. - Call (954) 598-4564 - Email andrew@optimuscapitalcorp.com - [Get pre-qualified online](https://houstonfixandfliploans.com/get-pre-qualified/) --- Source: https://houstonfixandfliploans.com/fix-and-flip-loans/ Title: Fix and Flip Loans in Houston | 90% of Purchase + 100% Rehab Summary: Fix and flip loans in Houston and Greater Houston: up to 90% of purchase and 100% of rehab, interest only, no prepayment penalty. Closes in about 7 days. [Home](https://houstonfixandfliploans.com/) / [Loan programs](https://houstonfixandfliploans.com/hard-money-loan-programs/) / Fix and flip loans # Fix and flip loans in Houston Bridge financing for investors who buy, renovate and resell in Houston and Greater Houston. One loan covers up to 90% of the purchase and the entire rehab budget. [Get pre-qualified](https://houstonfixandfliploans.com/get-pre-qualified/) Call (954) 598-4564 ## Fix and flip loan terms Purchase financed | up to 90% Rehab financed | up to 100% Cap on after-repair value | 70 to 75% Credit scores from | 600 Term | 6 to 24 months Payments | interest only Average closing | 21 days or less The 90% and 100% figures apply at a 720+ credit score. Below that, leverage and pricing adjust down to a 600 minimum. ## How the loan amount is worked out The loan is built from two numbers. The first is a share of what you pay for the property. The second is your renovation budget, which is held back and paid out in draws as each stage of work is finished. The two together are limited to 70 to 75% of the after-repair value (ARV): the price the property should bring once the work is complete. ### Example You buy the house for | $260,000 Your rehab budget is | $85,000 Expected resale value (ARV) | $470,000 90% of the purchase | $234,000 100% of the rehab | $85,000 Loan amount | $319,000 75% of ARV, the ceiling | $352,500 Down payment, before closing costs | $26,000 For illustration only. $319,000 is below the $352,500 ceiling, so the whole loan is available. ## How experience and credit change the terms - First deal? You can still qualify. A new investor with a 720+ score is eligible for the full 90% and 100%. - Five or more flips in the past two years? You can close with no inspection and no appraisal, up to 75% of ARV. - Score under 720? Programs run down to 600, with less leverage. Experience is counted as properties you bought and sold in the past 24 months that were acquired within the past 36 months. ## Built around a resale - Interest-only payments while you renovate - 6 to 24 month terms - No prepayment penalty: pay off the day you sell - No income or job verification ## When a project stalls: mid-rehab loans If a renovation is under way and the money has run out, a mid-rehab loan lends on the property as it stands today and adds the funds to finish. ## What a Houston flip involves - 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. - 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. - Property tax while you hold. 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. - Low closing taxes. 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, but deed restrictions. 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. - Permits and historic districts. The Houston Permitting Center handles city permits, and each suburb runs its own office. Houston has historic districts in the Heights, Montrose, Freedmen’s Town, Old Sixth Ward and Woodland Heights, among others. Exterior work, additions and demolitions in a historic district need a certificate of appropriateness from the Houston Archaeological and Historical Commission as well as a building permit. - Where the deals are. Independence Heights, Near Northside, Eastwood, Magnolia Park, Sunnyside and Third Ward inside the city; Spring Branch, Oak Forest, Alief and Sharpstown farther out; and older neighborhoods in Pasadena and Baytown. ## Documents we ask for - Loan application - Signed purchase contract, or the settlement statement from your purchase if you are refinancing - A rehab budget broken into line items with a clear scope of work - Contact details for your insurance agent and title company - For an LLC: articles of organization (certificate of formation in Texas), EIN letter and company agreement - For experienced investors: your projects from the last 3 years with settlement statements The full list is in our [hard money loan document checklist](https://houstonfixandfliploans.com/hard-money-loans-document-list/). ## Fix and flip loans: common questions ### How much of a fix and flip will you finance in Houston? As much as 90% of the purchase price and 100% of the renovation budget, provided the total loan is no more than 70 to 75% of the after-repair value. Those figures apply to borrowers with a credit score of 720 or higher. ### How quickly can a fix and flip loan close in Texas? The average is up to 21 days. Once title work and insurance are ready, a loan can close in about 7 days at your title company. ### Do I need flipping experience? No. First-time investors can qualify. Investors who have completed 5 or more flips in the past 2 years get a shorter process with no inspection or appraisal. ### Is there a transfer tax when I buy or sell in Texas? No. Texas has no transfer tax and no mortgage recording tax. Budget for title insurance, which is priced at rates set by the state, and the usual closing and recording fees. ### Will you finance a house that flooded in Harvey? Often, yes, if the house was repaired properly and the numbers account for flood insurance and the disclosure a buyer will see. Tell us the flood history up front. ### Should I budget for foundation work? Often, yes, especially on older houses. The clay soil under much of Houston makes foundation repairs common, so get an inspection before you set the rehab budget. ### Can I renovate a house and keep it as a rental instead of selling? Yes. When the work is done, a DSCR rental loan can replace the fix and flip loan, with a cash-out refinance at up to 80% loan-to-value. ### Can I use a fix and flip loan on a house I will live in? No. We lend on investment property only. ## Under contract on a flip? 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. - Call (954) 598-4564 - Email andrew@optimuscapitalcorp.com - [Get pre-qualified online](https://houstonfixandfliploans.com/get-pre-qualified/) --- Source: https://houstonfixandfliploans.com/hard-money-loan-programs/ Title: Hard Money Loan Programs in Houston | Flip, DSCR, Build Summary: Compare six loan programs for Houston investors: fix and flip, DSCR rental loans, ground-up construction, mid-rehab, portfolio and commercial. [Home](https://houstonfixandfliploans.com/) / Loan programs # Hard money loan programs for Houston investors Six loan types for investment real estate in Houston and Greater Houston: short-term fix and flip and construction loans, DSCR rental loans with terms up to 30 years, and mid-rehab, portfolio and commercial loans. ## Compare the programs Program | Use it for | Top leverage | Approved on [Fix and flip loans](https://houstonfixandfliploans.com/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 | The deal: price, rehab budget and resale value [DSCR rental loans](https://houstonfixandfliploans.com/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 | Whether the rent covers the payment [Ground-up construction loans](https://houstonfixandfliploans.com/new-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 | Budget, finished value and your building record [Mid-rehab loans](https://houstonfixandfliploans.com/hard-money-loan-programs/#mid-rehab) | Completing a renovation or build that has run short of funds | The current as-is value plus the cost to finish | As-is value and remaining scope [Portfolio loans](https://houstonfixandfliploans.com/hard-money-loan-programs/#portfolio) | A group of rentals under one note and one payment | 80% to buy or refinance, 75% on a cash-out | Rent across the whole group [Commercial loans](https://houstonfixandfliploans.com/hard-money-loan-programs/#commercial) | Multifamily, hospitality, office, industrial and retail | Priced per deal | The property and its income Actual leverage depends on credit, track record, property type and location. Loan sizes run from $75,000 to more than $10 million. ## Fix and flip loans Interest-only bridge loans for buying and renovating a property to sell. At a 720+ credit score we finance up to 90% of the price and all of the rehab, within 70 to 75% of the after-repair value. Investors with 5 or more flips in the past 2 years close without an inspection or appraisal. Scores down to 600 qualify at lower leverage. [More on fix and flip loans](https://houstonfixandfliploans.com/fix-and-flip-loans/) ## DSCR rental loans Fixed-rate loans for rental property, approved on the debt service coverage ratio and not on your own income. We lend up to 85% loan-to-value on a purchase and 80% on a cash-out refinance, on single-family rentals, duplexes to fourplexes, townhomes, condos and property owned by foreign nationals. [More on DSCR rental loans](https://houstonfixandfliploans.com/dscr-rental-loans/) ## Ground-up construction loans Financing to build at up to 90% of cost for experienced builders, inside 70 to 75% of the finished value, with up to 70% of the lot cost included. That covers new homes, build-to-rent houses, duplexes, tear-down rebuilds and small apartment buildings. First-time builder programs are available. [More on construction loans](https://houstonfixandfliploans.com/new-construction-loans/) ## Mid-rehab and completion loans Capital to finish a renovation or a build that has already started. The loan is sized on the new as-is value plus the remaining cost. Projects that ran over budget after foundation or flood work, or stalled waiting on a permit, are a common fit. ## Portfolio loans One loan across several rentals. Leverage follows the single-property rental terms: up to 80% loan-to-value to purchase or refinance, and up to 75% for a cash-out. - A single closing and a single monthly payment, which trims title and closing costs - A 120% partial release, so one property can be sold or refinanced out of the group later - Many investors divide a portfolio into holds and sales and finance each group separately ## Commercial loans Multifamily, hospitality, professional office, industrial and retail shopping centers. Every commercial loan is priced on its own facts. Larger commercial loans can involve upfront costs, and we spell those out before you commit. ## True of every program - For investment property. We do not finance a home you will live in - No employment or debt-to-income review - As a rule, nothing to pay upfront apart from the appraisal, which goes to the appraiser - Not reported on your personal credit, and no cap on the number of loans - Terms from 6 months to 30 years ## Not sure which loan fits? Describe the property and what you want to do with it. We will point you to the right program and quote the leverage and pricing. - Call (954) 598-4564 - Email andrew@optimuscapitalcorp.com - [Get pre-qualified online](https://houstonfixandfliploans.com/get-pre-qualified/) --- Source: https://houstonfixandfliploans.com/about-us/ Title: About Houston Fix and Flip Loans | Andrew Shanti Summary: Houston Fix and Flip Loans is the Houston division of Optimus Capital Corp, run by Andrew Shanti, in lending and real estate since 2005. [Home](https://houstonfixandfliploans.com/) / About # About Houston Fix and Flip Loans The Houston division of Optimus Capital Corp, a relationship-driven hard money lender that works only with real estate investors. ## Who we are Houston Fix and Flip Loans lends to real estate investors across Greater Houston, from the Heights, Eastwood and Spring Branch to Pasadena, Pearland, Katy, The Woodlands and Baytown. We are part of Optimus Capital Corp, a nationwide hard money lender, which gives Houston investors a lender that knows the local market and has the lending capacity of a national company. We finance fix and flips, single-family rentals, duplexes, build-to-rent homes, small multifamily, new construction, rental portfolios and commercial property. We do not finance homes that the borrower will live in. ## How we work Lending here is built on relationships. You get a clear answer on what a deal qualifies for, a loan that is pre-underwritten in-house so it funds right the first time, and a second set of eyes on your numbers before you commit to them. - Fix and flip loans average up to 21 days and can close in about 7 days once title and insurance are ready - Rental loans close in about 30 days, appraisal included - We go through the price, the budget or income, and the exit with you - No limit on how many loans one investor can hold with us ## About Optimus Capital Corp Our parent company, [Optimus Capital Corp](https://www.optimuscapitalcorp.com/), is a best-in-class, relationship-driven lender that works exclusively with real estate investors. Optimus Capital was founded in 2015 and is one of the only hard money lenders in the country that maintains a 5-star review rating. Our business model is based on the Golden Rule: do right by others over the long term. We want to knock it out of the park for you. We are a lender that has your back, with the right capital in place to get your loan over the finish line. Learn more about our parent company at [optimuscapitalcorp.com](https://www.optimuscapitalcorp.com/). ## Our other markets Optimus Capital Corp also lends through local sites in other markets. If you invest outside this area, these cover the same loan programs: - [Hilton Head Hard Money Loans](https://hiltonheadhardmoney.com/): DSCR, vacation rental and construction loans on Hilton Head Island and in Bluffton and Beaufort, South Carolina - [Charleston Hard Money Loans](https://charlestonhardmoneyloans.com/): DSCR, fix and flip and construction loans in Charleston and across South Carolina - [Gatlinburg Hard Money Loans](https://gatlinburghardmoneyloans.com/): DSCR and construction loans for rental cabins in Gatlinburg, Pigeon Forge and Sevierville, Tennessee - [Boston Fix and Flip Loans](https://bostonfixandfliploans.com/): fix and flip and rental loans in Boston and across Massachusetts - [Seattle Fix and Flip Loans](https://seattlefixandfliploans.com/): fix and flip and rental loans in Seattle and across Washington state - [Honolulu Fix and Flip Loans](https://honolulufixandfliploans.com/): fix and flip and rental loans in Honolulu and across Oahu - [Washington DC Fix and Flip Loans](https://washingtondcfixandfliploans.com/): fix and flip and rental loans in Washington, DC and the Maryland and Virginia suburbs - [New York Fix and Flip Loans](https://newyorkfixandfliploans.com/): fix and flip and rental loans in New York City, Long Island and Westchester - [Dallas Fix and Flip Loans](https://dallasfixandfliploans.com/): fix and flip, rental and build-to-rent loans in Dallas, Fort Worth and North Texas - [Miami Fix and Flip Loans](https://miamifixandfliploans.com/): fix and flip, rental and condo loans in Miami, Fort Lauderdale and South Florida - [Atlanta Fix and Flip Loans](https://atlantafixandfliploan.com/): fix and flip, rental and construction loans in Atlanta and metro Atlanta - [Short Term Rental Loans](https://shorttermrentalloans.com/): DSCR loans for Airbnb and vacation rentals nationwide, qualified on short-term income ## Your lender ### Andrew Shanti Senior Vice President Andrew has worked in lending and real estate since 2005 as a principal, executive and investor, across residential and commercial property. His background includes off-market commercial real estate, where he has facilitated more than $25 billion in offers for clients that include high net worth individuals and hedge funds. Away from work, Andrew hangs out with his Rhodesian Ridgeback, Harley, and his Goldendoodle, Brodie, and spends time with his wife and their four cats, two guinea pigs and two rabbits. - Call (954) 598-4564 - Email andrew@optimuscapitalcorp.com - [LinkedIn](https://www.linkedin.com/in/andrew-shanti-6a07631a/) ## What clients say about Andrew Andrew Shanti with Optimus Capital has been exceptional to work with. Over the past several years, I have closed numerous transactions with Andrew on behalf of sophisticated real estate investors, and his performance has been consistently outstanding. [...] Every transaction I have been involved with Andrew at Optimus Capital has closed, including many requiring thoughtful structuring and creative solutions due to their challenging nature. Maria McKee, Premier Sotheby’s International Realty, Google review of Optimus Capital Just completed a rental portfolio refi with Optimus. Andrew and Daisy were amazing to work with and helped me work through every challenge quickly and with clear understanding. Zachary Hagan, Google review of Optimus Capital These reviews were left for Optimus Capital, our parent company, about Andrew Shanti. [Read all of the Optimus Capital reviews on Google](https://www.google.com/maps?cid=16792545801423268972). ## Loan programs Program | Use it for | Top leverage [DSCR rental loans](https://houstonfixandfliploans.com/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](https://houstonfixandfliploans.com/new-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](https://houstonfixandfliploans.com/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](https://houstonfixandfliploans.com/hard-money-loan-programs/#portfolio) | A group of rentals under one note, or multifamily and commercial property | 80% on a portfolio purchase; commercial priced per deal Actual leverage depends on credit, track record, property type and location. Loans start at $75,000. ## Talk to Andrew about your deal 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. - Call (954) 598-4564 - Email andrew@optimuscapitalcorp.com - [Get pre-qualified online](https://houstonfixandfliploans.com/get-pre-qualified/) --- Source: https://houstonfixandfliploans.com/faq/ Title: Hard Money & Fix and Flip Loan FAQ for Houston Investors Summary: Answers on hard money, fix and flip and DSCR loans in Houston: credit scores, Texas property tax, flood rules, short-term rentals and closing times. [Home](https://houstonfixandfliploans.com/) / FAQ # Hard money, fix and flip and DSCR loans in Houston: your questions answered How investment property lending works in Houston and Greater Houston: what we finance, what it costs to start, credit, rentals, local rules, timing and loan size. ## Getting started ### What is a hard money loan? 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. ### Who is Houston Fix and Flip Loans? 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. ### Where do you lend? 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. ### What loans do you offer? 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. ### Who is the best lender for a fix and flip in Houston? 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](https://houstonfixandfliploans.com/investment-property-loans-houston/). ### What does non-owner-occupied mean? 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. ### Will you finance a home I plan to live in? 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. ## Cost, credit and qualifying ### Do I pay anything upfront? 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. ### What credit score do I need? 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. ### Do you verify income or employment? 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. ### Will the loan show on my credit report? No. These are business-purpose loans and are not reported on personal credit like a conventional mortgage. ### How many loans can I have with you? As many as your deals support. There is no limit on the number of properties we will finance for one investor. ### Can my LLC be the borrower? 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. ### What closing costs are specific to Texas? 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. ## Texas rentals and local rules ### What is a DSCR loan? 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. ### Can an investor run a short-term rental in Houston? 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. ### How are investment properties taxed in Texas? 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. ### Is there rent control in Houston? 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. ### How do floodplain rules affect a Houston deal? 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. ### Does Houston have 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. ### Why do so many Houston houses need foundation work? 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. ### Do you lend to foreign nationals? Yes, through our rental loan programs. ## Timing and loan size ### How quickly can you close? 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. ### Who handles the closing? In Texas, a title company handles the closing and issues the title policy. Have yours chosen when you apply. ### What are the smallest and largest loans? The minimum is $75,000. The maximum is more than $10 million. ### How long are the terms? 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. ### Are there prepayment penalties? 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. Something we did not cover? Call (954) 598-4564 or email andrew@optimuscapitalcorp.com. ## Have a Houston deal in mind? Run it by us. 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. - Call (954) 598-4564 - Email andrew@optimuscapitalcorp.com - [Get pre-qualified online](https://houstonfixandfliploans.com/get-pre-qualified/) --- Source: https://houstonfixandfliploans.com/contact/ Title: Contact Us | Houston Fix and Flip Loans Summary: Call (954) 598-4564 or get pre-qualified online. Tell us the property and your plan and we will reply with leverage and pricing. No obligation. [Home](https://houstonfixandfliploans.com/) / Contact # Tell us about your deal Share the property and your plan, and we will come back with leverage and pricing. There is no obligation. ## Reach us directly - Call (954) 598-4564 - Email andrew@optimuscapitalcorp.com - [Get pre-qualified online](https://houstonfixandfliploans.com/get-pre-qualified/) ## Useful to have ready - Property address and type, and whether it is tenant-occupied - Purchase price, or today’s value if you are refinancing - Rehab or construction budget, if there is one - The lease or projected rent, for a rental - A rough credit score and how many deals you have done ## After you send the form - You receive an email confirming your details reached us. - We follow up with a text message. - Andrew or a member of the Optimus Capital team calls to talk through your scenario. We lend on investment property in Houston and Greater Houston. We do not finance homes the borrower will live in. ## Deal form By sending the form you agree to be contacted about your request. See the [privacy policy](https://optimuscapitalcorp.com/privacy-policy). --- Source: https://houstonfixandfliploans.com/areas-we-serve/ Title: Areas We Serve | Houston & Greater Houston Summary: Hard money, fix and flip and DSCR loans in Houston, Pasadena, Pearland, Sugar Land, Katy, The Woodlands, Conroe and Baytown. [Home](https://houstonfixandfliploans.com/) / Areas we serve # Where we lend: Houston and Greater Houston Houston and the rest of Harris County, plus Fort Bend, Montgomery, Brazoria and Galveston counties. ## Local guides Market | County | What investors buy there [Houston](https://houstonfixandfliploans.com/houston-tx/) | Harris, Fort Bend, Montgomery | Bungalows and ranch houses to renovate, inner-Loop townhomes, rentals [Pasadena](https://houstonfixandfliploans.com/pasadena-tx/) | Harris | Lower-priced 1950s to 1970s houses to renovate and rent [Pearland](https://houstonfixandfliploans.com/pearland-tx/) | Brazoria, Fort Bend, Harris | Newer homes and townhomes to rent, new construction [Sugar Land](https://houstonfixandfliploans.com/sugar-land-tx/) | Fort Bend | Higher-priced rentals in master-planned communities [Katy](https://houstonfixandfliploans.com/katy-tx/) | Harris, Fort Bend, Waller | Build-to-rent and newer suburban rentals [The Woodlands](https://houstonfixandfliploans.com/the-woodlands-tx/) | Montgomery, Harris | Higher-priced rentals and renovations [Conroe](https://houstonfixandfliploans.com/conroe-tx/) | Montgomery | New construction, build-to-rent and older homes downtown [Baytown](https://houstonfixandfliploans.com/baytown-tx/) | Harris, Chambers | Workforce rentals near the refineries and the port ## 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. ## Loan programs available everywhere we lend Program | Use it for | Top leverage [DSCR rental loans](https://houstonfixandfliploans.com/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](https://houstonfixandfliploans.com/new-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](https://houstonfixandfliploans.com/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](https://houstonfixandfliploans.com/hard-money-loan-programs/#portfolio) | A group of rentals under one note, or multifamily and commercial property | 80% on a portfolio purchase; commercial priced per deal Actual leverage depends on credit, track record, property type and location. Loans start at $75,000. ## Have a Houston deal in mind? Run it by us. 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. - Call (954) 598-4564 - Email andrew@optimuscapitalcorp.com - [Get pre-qualified online](https://houstonfixandfliploans.com/get-pre-qualified/) --- Source: https://houstonfixandfliploans.com/get-pre-qualified/ Title: Get a Quote | Houston Fix and Flip Loans Summary: Get pre-qualified for a fix and flip, DSCR rental or construction loan on your Houston-area investment property. No cost, no obligation. [Home](https://houstonfixandfliploans.com/) / Get a quote # Get a quote on your deal Tell us about the property and your plan. Andrew Shanti will review it and come back to you with the leverage and pricing your deal qualifies for. There is no cost and no obligation. Full name (required) Email (required) Phone (required) Loan type (required)Select oneFix and flipDSCR rental loan: purchaseDSCR rental loan: cash-out refinanceGround-up constructionPortfolio or commercialNot sure yet Property city Purchase price or current value Estimated credit scoreSelect one720 or higher680 to 719640 to 679600 to 639Below 600Not sure Investment deals in the last 2 yearsSelect oneNone yet1 to 23 to 45 or more Anything else we should know? Get pre-qualified ## Thank you. Your request is in. Andrew will review your deal and get back to you with the leverage and pricing it qualifies for. For anything urgent, call (954) 598-4564. ## What happens next - Your details go straight to Andrew. - He reviews the deal and runs the numbers. - You hear back with the leverage and pricing available, and the next steps. ## Prefer to talk? - Call (954) 598-4564 - Email andrew@optimuscapitalcorp.com We lend on non-owner-occupied investment property in Houston and Greater Houston. We do not finance homes the borrower will live in. --- Source: https://houstonfixandfliploans.com/hard-money-loan-questions/ Title: Hard Money Loan Questions Answered | Houston Summary: 39 answers on hard money loans in Houston: rates and points, down payment, credit, ARV, draws, closing times, refinancing and choosing a lender. [Home](https://houstonfixandfliploans.com/) / Questions # Hard money loan questions, answered by a Houston lender 39 plain answers to the questions investors ask most about hard money loans: how they work, what they cost, how to qualify, how long they take and how to choose a lender. Written and reviewed by Andrew Shanti, Senior Vice President at Optimus Capital Corp, in lending and real estate since 2005. [Get a quote](https://houstonfixandfliploans.com/get-pre-qualified/) Call (954) 598-4564 ## Jump to a topic - Hard money basics - Rates, points and costs - Down payment, leverage and qualifying - The loan process - Rentals, refinancing and exit strategies - Choosing a hard money lender Last reviewed 2026-11-07. General information, not legal or tax advice. Terms depend on credit, experience, the property and the market. ## Hard money basics ### What is a hard money loan? A hard money loan is a short-term, business-purpose loan secured by investment real estate and funded by private capital instead of a bank. It is approved mainly on the property and the deal, such as the purchase price, the renovation budget and the value after repairs, rather than on your income or tax returns. Investors in Houston and Greater Houston use hard money to buy, renovate, build and refinance property quickly. ### How does a hard money loan work? The lender funds part of the purchase price at closing and holds the renovation budget back, releasing it in draws as each stage of work is inspected and completed. You make interest-only payments during a term of 6 to 24 months, then repay the loan when you sell the property or refinance it into a long-term loan. ### What is the difference between hard money and private money? The terms overlap. Hard money usually means a professional lender with set programs, underwriting and draw processes, like Optimus Capital. Private money often means an individual, such as a friend, relative or local investor, lending on negotiated terms. Both lend on the property rather than your income. ### What is the difference between a hard money loan and a bank loan? A bank approves the borrower: income, tax returns, debt-to-income ratio and the number of mortgages you already have, and it often will not finance a property that needs major work. A hard money lender approves the deal, closes in days instead of weeks, funds renovations and has no limit on how many loans you hold. The trade-off is a higher rate and a shorter term. ### What can a hard money loan be used for? Fix and flips, buying and renovating a rental to refinance later (BRRRR), ground-up construction, finishing a stalled project, buying at auction or on a tight deadline, bridging until a long-term loan closes, and pulling cash out of property you own free and clear. It is for investment property only. ### Can I use a hard money loan to buy a home I will live in? No. Hard money loans are business-purpose loans for non-owner-occupied investment property. For a primary residence or second home, a conventional or government-backed mortgage from a licensed mortgage lender is the right choice. ### Is a hard money loan a good idea? It is a good tool when speed, renovation funding or flexible approval makes a profitable deal possible and you have a clear exit: a sale or a refinance. It is a poor fit when the numbers only work at a bank rate, when the exit is uncertain, or for a home you will live in. [Get a quote](https://houstonfixandfliploans.com/get-pre-qualified/) Ask Andrew a question ## Rates, points and costs ### What are hard money loan rates? Hard money rates are higher than bank mortgage rates because the loans are short-term, close fast and fund renovations. Pricing depends on your credit score, experience, leverage, the property and the market, and it is usually quoted as an interest rate plus points. [Get a quote](https://houstonfixandfliploans.com/get-pre-qualified/) for your specific deal. ### What are points on a hard money loan? A point is an upfront fee equal to 1% of the loan amount, paid at closing. On a $300,000 loan, one point is $3,000. Points and the interest rate trade off against each other, so compare total cost over the time you expect to hold the loan, not just the rate. ### Do I pay anything upfront? As a rule, no, apart from the appraisal, which you pay directly to the appraisal company. Large commercial loans can involve upfront costs, and we spell those out before you commit. ### What closing costs come with a hard money loan? Expect lender points and fees, title insurance, settlement or attorney fees, recording fees, any local transfer or mortgage taxes, prepaid interest, insurance and the appraisal. Our pages on local rules explain the costs specific to Houston. ### Do hard money loans have prepayment penalties? Our fix and flip loans do not. You can pay off the day you sell or refinance. Long-term DSCR rental loans offer a 3-year or 5-year prepayment penalty, or none at a higher rate. ### Are hard money loan payments interest only? Yes. Short-term fix and flip and construction loans have interest-only monthly payments,. Payments are smaller than on an amortizing loan, which helps cash flow while the property is being renovated. [Get a quote](https://houstonfixandfliploans.com/get-pre-qualified/) Ask Andrew a question ## Down payment, leverage and qualifying ### How much down payment do I need for a hard money loan? With strong credit, as little as 10% of the purchase price: we lend up to 90% of the purchase and 100% of the renovation budget at a 720+ credit score, as long as the loan stays within 70 to 75% of the after-repair value. Lower scores need more down. Plan separately for closing costs and reserves. ### What credit score do I need for a hard money loan? Our programs start at a 600 credit score. The best leverage, 90% of purchase and 100% of rehab on a fix and flip, is for scores of 720 and up. Scores below that qualify with lower leverage and adjusted pricing. ### Can I get a hard money loan with bad credit? Often, yes, if your score is 600 or higher and the deal is strong. Hard money lenders focus on the property and the plan, but credit still sets leverage and pricing, and recent foreclosures, bankruptcies or mortgage late payments can limit options. ### Do hard money lenders verify income? We do not. There are no tax returns, pay stubs or debt-to-income ratio. We look for enough cash to close and carry the project, a property that supports the loan, and a credit history that shows debts are paid on time. ### What is ARV in hard money lending? ARV means after-repair value: what the property should be worth once the planned renovation is finished, based on recent sales of comparable renovated properties. Fix and flip loans are capped at a share of ARV, typically 70 to 75%. ### What is the difference between LTV, LTC and ARV? Loan-to-value (LTV) compares the loan to the property’s current value. Loan-to-cost (LTC) compares it to what you spend on the purchase and the work. Loan-to-ARV compares it to the value after repairs. A fix and flip or construction loan usually has to fit inside both a cost limit and an ARV limit. ### What is the 70% rule for flipping houses? It is a rule of thumb that an investor should pay no more than 70% of the after-repair value minus the repair costs. On a $400,000 ARV with $60,000 of work, that is $220,000. It leaves room for financing, holding and selling costs and profit, and it lines up with how lenders cap loans at 70 to 75% of ARV. ### Can I get a hard money loan for my first flip? Yes. First-time investors qualify, and with a 720+ credit score they are eligible for full leverage. Experienced investors with 5 or more flips in the past 2 years get a shorter process, without an inspection or appraisal, up to 75% of ARV. ### Can my LLC be the borrower? Yes. Most investors close in an LLC. We need the articles of organization, the IRS EIN letter, a signed operating agreement showing each member’s share and, for an older LLC, a certificate of good standing. Members usually sign a personal guarantee. ### Do you lend to out-of-state investors and foreign nationals? Yes. We lend to investors who live outside Houston, and to foreign nationals through our rental loan programs. [Get a quote](https://houstonfixandfliploans.com/get-pre-qualified/) Ask Andrew a question ## The loan process ### How fast can a hard money loan close? Fix and flip loans average up to 21 days and can close in about 7 days once title and insurance are ready. Rental and DSCR loans take about 30 days, appraisal included. ### What documents do I need for a hard money loan? A loan application, the signed purchase contract, a line-item rehab or construction budget, entity documents for an LLC, bank statements showing funds to close, and insurance and title contacts. Experienced investors add a schedule of recent projects. See our [document checklist](https://houstonfixandfliploans.com/hard-money-loans-document-list/). ### How do rehab draws work? The renovation budget is held back at closing. When a stage of work is done, you request a draw, an inspector confirms the work and the funds are released for that stage. You or your contractor need enough cash to start each stage before it is reimbursed. ### Do hard money lenders require an appraisal? Usually, yes. The appraisal confirms the as-is value and the after-repair value. Investors with 5 or more flips in the past 2 years can close a flip without an appraisal or inspection, up to 75% of ARV. ### How long is a hard money loan term? Fix and flip and bridge loans run 6 to 24 months. Construction loans are sized to the build schedule. Long-term DSCR rental loans run 5 to 30 years. ### What happens if my project goes over budget or over time? Talk to the lender early. Options include an extension, a modification, a mid-rehab or completion loan that lends on the current value plus the cost to finish, or a refinance. Building contingency into the budget and the term avoids most problems. ### What happens if I cannot repay a hard money loan? Missing the maturity date leads to default interest and fees, and ultimately the lender can foreclose on the property. Most problems are solved before that with an extension, a sale or a refinance, which is why a clear exit strategy matters from day one. [Get a quote](https://houstonfixandfliploans.com/get-pre-qualified/) Ask Andrew a question ## Rentals, refinancing and exit strategies ### What is an exit strategy? It is how you will repay a short-term loan: usually by selling the renovated property or by refinancing it into a long-term rental loan. Lenders ask for it upfront, and a backup exit, such as renting if the sale market slows, makes a deal stronger. ### What is the BRRRR method? Buy, rehab, rent, refinance, repeat. You buy and renovate with a hard money loan, rent the property out, then refinance into a long-term DSCR loan that can return much of your cash, and use it on the next deal. ### Can I refinance out of a hard money loan? Yes. When the renovation is done and the property is rented, a [DSCR rental loan](https://houstonfixandfliploans.com/dscr-rental-loans/) can pay off the hard money loan, with a cash-out refinance at up to 80% of the new value. ### What is a DSCR loan? A DSCR loan is a long-term rental property loan approved on the debt service coverage ratio: the rent divided by the full monthly payment of principal, interest, taxes, insurance and association dues. It does not use your personal income. We prefer a ratio of 1.0 or higher and lend up to 85% of the purchase price. ### What is a mid-rehab or completion loan? It is a loan for a renovation or build that has already started and needs more money to finish. It is sized on the property’s current as-is value plus the remaining cost of work. [Get a quote](https://houstonfixandfliploans.com/get-pre-qualified/) Ask Andrew a question ## Choosing a hard money lender ### How do I choose a hard money lender? Ask how much of the purchase and the renovation they fund, how fast draws are paid, the full cost in rate and points, whether there is a prepayment penalty, how fast they close, and whether they have closed deals like yours. Check reviews, and make sure they lend directly rather than brokering your file. ### Who is the best hard money lender in Houston? The best lender is the one that funds your deal on the terms that make it profitable and closes on time. Houston Fix and Flip Loans lends up to 90% of the purchase and 100% of the rehab, closes flips in about 7 days, and is a division of Optimus Capital Corp, a 5-star reviewed lender that works only with real estate investors. It is run by Andrew Shanti, who has worked in lending and real estate since 2005. ### Are hard money loans regulated? Business-purpose loans on investment property are generally outside many consumer mortgage rules, which are written for homes people live in. State lending and licensing laws still apply and vary by state. Because these are business loans, they are not reported on your personal credit like a mortgage. ### What are the risks of a hard money loan? Higher cost than a bank loan, a short term that must be repaid on time, and the risk of losing the property if the project fails. You manage those risks by buying right, budgeting the renovation with a contingency, choosing a term with a cushion and having a backup exit. [Get a quote](https://houstonfixandfliploans.com/get-pre-qualified/) Ask Andrew a question ## More answers Local rules, taxes and costs are covered on our [FAQ page](https://houstonfixandfliploans.com/faq/), our [loan programs](https://houstonfixandfliploans.com/hard-money-loan-programs/) page and our [guides](https://houstonfixandfliploans.com/blog/). [Andrew Shanti](https://houstonfixandfliploans.com/about-us/#andrew-shanti) Senior Vice President, Houston Fix and Flip Loans · Optimus Capital Corp Andrew has worked in lending and real estate since 2005 as a principal, executive and investor, across residential and commercial property. He has facilitated more than $25 billion in off-market commercial real estate offers for clients. [More about Andrew](https://houstonfixandfliploans.com/about-us/#andrew-shanti) · (954) 598-4564 · [LinkedIn](https://www.linkedin.com/in/andrew-shanti-6a07631a/) ## Have a deal? Get a quote. Send the address, the price and your plan. Andrew will reply with the leverage and pricing that fit. - Call (954) 598-4564 - Email andrew@optimuscapitalcorp.com - [Get pre-qualified online](https://houstonfixandfliploans.com/get-pre-qualified/) --- Source: https://houstonfixandfliploans.com/houston-tx/ Title: Houston, TX Hard Money & Fix and Flip Loans Summary: Fix and flip, DSCR rental and construction loans for Houston, TX investors. 90% of purchase and 100% of rehab on flips, up to 85% LTV on rentals. [Home](https://houstonfixandfliploans.com/) / [Areas we serve](https://houstonfixandfliploans.com/areas-we-serve/) / Houston, TX # 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. [Get pre-qualified](https://houstonfixandfliploans.com/get-pre-qualified/) Call (954) 598-4564 ## 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](https://houstonfixandfliploans.com/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](https://houstonfixandfliploans.com/new-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](https://houstonfixandfliploans.com/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](https://houstonfixandfliploans.com/hard-money-loan-programs/#portfolio) | A group of rentals under one note, or multifamily and commercial property | 80% on a portfolio purchase; commercial priced per deal Actual leverage depends on credit, track record, property type and location. Loans start at $75,000. ## Houston hard money loans: common questions ### Do you offer hard money loans in Houston? 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. ### Do you finance inner-Loop townhome builds? 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. ### Can I rent a Houston investment property on Airbnb? 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. ### How fast can a loan close in Houston? 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. ## Other markets we serve - [Pasadena, TX](https://houstonfixandfliploans.com/pasadena-tx/) - [Pearland, TX](https://houstonfixandfliploans.com/pearland-tx/) - [Sugar Land, TX](https://houstonfixandfliploans.com/sugar-land-tx/) - [Katy, TX](https://houstonfixandfliploans.com/katy-tx/) - [The Woodlands, TX](https://houstonfixandfliploans.com/the-woodlands-tx/) - [Conroe, TX](https://houstonfixandfliploans.com/conroe-tx/) - [Baytown, TX](https://houstonfixandfliploans.com/baytown-tx/) - [All service areas](https://houstonfixandfliploans.com/areas-we-serve/) ## 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. - Call (954) 598-4564 - Email andrew@optimuscapitalcorp.com - [Get pre-qualified online](https://houstonfixandfliploans.com/get-pre-qualified/) --- Source: https://houstonfixandfliploans.com/pasadena-tx/ Title: Pasadena, TX Hard Money & Fix and Flip Loans Summary: Fix and flip, DSCR rental and construction loans for Pasadena, TX investors. 90% of purchase and 100% of rehab on flips, up to 85% LTV on rentals. [Home](https://houstonfixandfliploans.com/) / [Areas we serve](https://houstonfixandfliploans.com/areas-we-serve/) / Pasadena, TX # Hard money and fix and flip loans in Pasadena, Texas Financing for lower-priced houses to renovate and long-term rentals in Pasadena. [Get pre-qualified](https://houstonfixandfliploans.com/get-pre-qualified/) Call (954) 598-4564 ## The Pasadena market for investors Pasadena sits east of Houston along the Houston Ship Channel, with refineries, chemical plants and the port keeping a large workforce nearby. Most of its housing is single-family homes built from the 1950s to the 1970s. Investors buy houses at prices below much of the metro area, renovate them for first-time buyers or hold them as long-term rentals. ## Areas investors ask about - North Pasadena: older, lower-priced houses to renovate - Central Pasadena: 1960s and 1970s ranch houses - South Pasadena, near Clear Lake: newer homes and higher rents ## Plan for these on a Pasadena 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. - Clay soil makes foundation movement common in older houses. Get a foundation inspection before you set the rehab budget. - Wind, hail and flood drive insurance costs. Get quotes, including flood, before you make an offer. ## Loans available in Pasadena Program | Use it for | Top leverage [DSCR rental loans](https://houstonfixandfliploans.com/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](https://houstonfixandfliploans.com/new-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](https://houstonfixandfliploans.com/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](https://houstonfixandfliploans.com/hard-money-loan-programs/#portfolio) | A group of rentals under one note, or multifamily and commercial property | 80% on a portfolio purchase; commercial priced per deal Actual leverage depends on credit, track record, property type and location. Loans start at $75,000. ## Pasadena hard money loans: common questions ### Do you lend in Pasadena, Texas? Yes. We finance fix and flips, rentals and construction across Pasadena and Harris County. ### Can a Pasadena rental qualify on the rent alone? Yes. A DSCR loan is approved on whether the rent covers the payment, including taxes and insurance. ### How fast can a loan close in Pasadena? 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. ## Other markets we serve - [Houston, TX](https://houstonfixandfliploans.com/houston-tx/) - [Pearland, TX](https://houstonfixandfliploans.com/pearland-tx/) - [Sugar Land, TX](https://houstonfixandfliploans.com/sugar-land-tx/) - [Katy, TX](https://houstonfixandfliploans.com/katy-tx/) - [The Woodlands, TX](https://houstonfixandfliploans.com/the-woodlands-tx/) - [Conroe, TX](https://houstonfixandfliploans.com/conroe-tx/) - [Baytown, TX](https://houstonfixandfliploans.com/baytown-tx/) - [All service areas](https://houstonfixandfliploans.com/areas-we-serve/) ## Looking at a property in Pasadena? 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. - Call (954) 598-4564 - Email andrew@optimuscapitalcorp.com - [Get pre-qualified online](https://houstonfixandfliploans.com/get-pre-qualified/) --- Source: https://houstonfixandfliploans.com/pearland-tx/ Title: Pearland, TX Hard Money & Fix and Flip Loans Summary: Fix and flip, DSCR rental and construction loans for Pearland, TX investors. 90% of purchase and 100% of rehab on flips, up to 85% LTV on rentals. [Home](https://houstonfixandfliploans.com/) / [Areas we serve](https://houstonfixandfliploans.com/areas-we-serve/) / Pearland, TX # Hard money and fix and flip loans in Pearland, Texas Loans for newer homes and townhomes to rent, renovations and new construction in Pearland. [Get pre-qualified](https://houstonfixandfliploans.com/get-pre-qualified/) Call (954) 598-4564 ## The Pearland market for investors Pearland, south of Houston, has been one of the fastest-growing suburbs in Texas for two decades, with new subdivisions such as Shadow Creek Ranch and easy access to the Texas Medical Center. Investors hold newer houses and townhomes as long-term rentals and build new homes on lots in growing subdivisions. Older homes near the original town center are renovated for resale. ## Areas investors ask about - Old Pearland: older houses to renovate - Shadow Creek Ranch and west Pearland: newer homes in master-planned communities - East Pearland: new construction and larger lots ## Plan for these on a Pearland 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 Pearland Program | Use it for | Top leverage [DSCR rental loans](https://houstonfixandfliploans.com/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](https://houstonfixandfliploans.com/new-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](https://houstonfixandfliploans.com/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](https://houstonfixandfliploans.com/hard-money-loan-programs/#portfolio) | A group of rentals under one note, or multifamily and commercial property | 80% on a portfolio purchase; commercial priced per deal Actual leverage depends on credit, track record, property type and location. Loans start at $75,000. ## Pearland hard money loans: common questions ### Do you finance rentals in Pearland? Yes, with DSCR rental loans at up to 85% loan-to-value on a purchase. ### Do you finance new construction in Pearland? Yes, at up to 90% of cost for experienced builders, with the lot included. ### How fast can a loan close in Pearland? 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. ## Other markets we serve - [Houston, TX](https://houstonfixandfliploans.com/houston-tx/) - [Pasadena, TX](https://houstonfixandfliploans.com/pasadena-tx/) - [Sugar Land, TX](https://houstonfixandfliploans.com/sugar-land-tx/) - [Katy, TX](https://houstonfixandfliploans.com/katy-tx/) - [The Woodlands, TX](https://houstonfixandfliploans.com/the-woodlands-tx/) - [Conroe, TX](https://houstonfixandfliploans.com/conroe-tx/) - [Baytown, TX](https://houstonfixandfliploans.com/baytown-tx/) - [All service areas](https://houstonfixandfliploans.com/areas-we-serve/) ## Looking at a property in Pearland? 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. - Call (954) 598-4564 - Email andrew@optimuscapitalcorp.com - [Get pre-qualified online](https://houstonfixandfliploans.com/get-pre-qualified/) --- Source: https://houstonfixandfliploans.com/sugar-land-tx/ Title: Sugar Land, TX Hard Money & Fix and Flip Loans Summary: Fix and flip, DSCR rental and construction loans for Sugar Land, TX investors. 90% of purchase and 100% of rehab on flips, up to 85% LTV on rentals. [Home](https://houstonfixandfliploans.com/) / [Areas we serve](https://houstonfixandfliploans.com/areas-we-serve/) / Sugar Land, TX # Hard money and fix and flip loans in Sugar Land, Texas Financing for higher-priced rentals and renovations in Sugar Land’s master-planned communities. [Get pre-qualified](https://houstonfixandfliploans.com/get-pre-qualified/) Call (954) 598-4564 ## The Sugar Land market for investors Sugar Land is a prosperous suburb in Fort Bend County southwest of Houston, built largely around master-planned communities such as First Colony and Telfair, with strong schools and steady demand from families. Investors hold single-family houses as long-term rentals and update homes from the 1980s and 1990s for resale. ## Areas investors ask about - First Colony: 1980s and 1990s homes ready for updates - Telfair and Riverstone: newer, higher-priced homes - Older Sugar Land, near Highway 90: smaller homes to renovate ## Plan for these on a Sugar Land 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. - Wind, hail and flood drive insurance costs. Get quotes, including flood, before you make an offer. ## Loans available in Sugar Land Program | Use it for | Top leverage [DSCR rental loans](https://houstonfixandfliploans.com/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](https://houstonfixandfliploans.com/new-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](https://houstonfixandfliploans.com/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](https://houstonfixandfliploans.com/hard-money-loan-programs/#portfolio) | A group of rentals under one note, or multifamily and commercial property | 80% on a portfolio purchase; commercial priced per deal Actual leverage depends on credit, track record, property type and location. Loans start at $75,000. ## Sugar Land hard money loans: common questions ### Do you lend in Sugar Land? Yes. We finance fix and flips, rentals and construction across Sugar Land and Fort Bend County. ### Do HOA dues count in a DSCR loan? Yes. Association dues are part of the monthly payment we use to work out the ratio. ### How fast can a loan close in Sugar Land? 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. ## Other markets we serve - [Houston, TX](https://houstonfixandfliploans.com/houston-tx/) - [Pasadena, TX](https://houstonfixandfliploans.com/pasadena-tx/) - [Pearland, TX](https://houstonfixandfliploans.com/pearland-tx/) - [Katy, TX](https://houstonfixandfliploans.com/katy-tx/) - [The Woodlands, TX](https://houstonfixandfliploans.com/the-woodlands-tx/) - [Conroe, TX](https://houstonfixandfliploans.com/conroe-tx/) - [Baytown, TX](https://houstonfixandfliploans.com/baytown-tx/) - [All service areas](https://houstonfixandfliploans.com/areas-we-serve/) ## Looking at a property in Sugar Land? 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. - Call (954) 598-4564 - Email andrew@optimuscapitalcorp.com - [Get pre-qualified online](https://houstonfixandfliploans.com/get-pre-qualified/) --- Source: https://houstonfixandfliploans.com/katy-tx/ Title: Katy, TX Hard Money & Fix and Flip Loans Summary: Fix and flip, DSCR rental and construction loans for Katy, TX investors. 90% of purchase and 100% of rehab on flips, up to 85% LTV on rentals. [Home](https://houstonfixandfliploans.com/) / [Areas we serve](https://houstonfixandfliploans.com/areas-we-serve/) / Katy, TX # Hard money and fix and flip loans in Katy, Texas Loans for build-to-rent homes, newer suburban rentals and renovations in Katy. [Get pre-qualified](https://houstonfixandfliploans.com/get-pre-qualified/) Call (954) 598-4564 ## 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](https://houstonfixandfliploans.com/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](https://houstonfixandfliploans.com/new-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](https://houstonfixandfliploans.com/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](https://houstonfixandfliploans.com/hard-money-loan-programs/#portfolio) | A group of rentals under one note, or multifamily and commercial property | 80% on a portfolio purchase; commercial priced per deal Actual leverage depends on credit, track record, property type and location. Loans start at $75,000. ## Katy hard money loans: common questions ### Do you finance build-to-rent homes in Katy? Yes. Build with a construction loan, then refinance into a DSCR rental loan once the home is leased. ### Why are property taxes so high in Katy subdivisions? Many sit inside municipal utility districts, which add their own tax to the county, city and school rates. ### How fast can a loan close in Katy? 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. ## Other markets we serve - [Houston, TX](https://houstonfixandfliploans.com/houston-tx/) - [Pasadena, TX](https://houstonfixandfliploans.com/pasadena-tx/) - [Pearland, TX](https://houstonfixandfliploans.com/pearland-tx/) - [Sugar Land, TX](https://houstonfixandfliploans.com/sugar-land-tx/) - [The Woodlands, TX](https://houstonfixandfliploans.com/the-woodlands-tx/) - [Conroe, TX](https://houstonfixandfliploans.com/conroe-tx/) - [Baytown, TX](https://houstonfixandfliploans.com/baytown-tx/) - [All service areas](https://houstonfixandfliploans.com/areas-we-serve/) ## 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. - Call (954) 598-4564 - Email andrew@optimuscapitalcorp.com - [Get pre-qualified online](https://houstonfixandfliploans.com/get-pre-qualified/) --- Source: https://houstonfixandfliploans.com/the-woodlands-tx/ Title: The Woodlands, TX Hard Money & Fix and Flip Loans Summary: Fix and flip, DSCR rental and construction loans for The Woodlands, TX investors. 90% of purchase and 100% of rehab on flips, up to 85% LTV on rentals. [Home](https://houstonfixandfliploans.com/) / [Areas we serve](https://houstonfixandfliploans.com/areas-we-serve/) / The Woodlands, TX # Hard money and fix and flip loans in The Woodlands, Texas Financing for higher-priced rentals and renovations in The Woodlands. [Get pre-qualified](https://houstonfixandfliploans.com/get-pre-qualified/) Call (954) 598-4564 ## The The Woodlands market for investors The Woodlands is a master-planned community north of Houston, governed by a township rather than a city, with corporate offices, wooded villages and strong demand from families and professionals. Investors hold single-family houses and townhomes as long-term rentals and update homes from the 1970s through the 1990s in the older villages. ## Villages investors ask about - Grogan’s Mill and Panther Creek: the oldest villages, with homes ready for updates - Cochran’s Crossing and Alden Bridge: 1990s homes and strong rents - Creekside Park: newer, higher-priced homes ## Plan for these on a The Woodlands 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. - Every home is subject to the community’s covenants and design review, so exterior changes need approval before you start. Most homes in master-planned communities have association dues, which count in the payment, and some deed restrictions limit short-term rentals. - Wind, hail and flood drive insurance costs. Get quotes, including flood, before you make an offer. ## Loans available in The Woodlands Program | Use it for | Top leverage [DSCR rental loans](https://houstonfixandfliploans.com/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](https://houstonfixandfliploans.com/new-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](https://houstonfixandfliploans.com/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](https://houstonfixandfliploans.com/hard-money-loan-programs/#portfolio) | A group of rentals under one note, or multifamily and commercial property | 80% on a portfolio purchase; commercial priced per deal Actual leverage depends on credit, track record, property type and location. Loans start at $75,000. ## The Woodlands hard money loans: common questions ### Do you lend in The Woodlands? Yes. We finance fix and flips, rentals and construction across The Woodlands and Montgomery County. ### Do I need approval for exterior renovations? Yes. Exterior changes in The Woodlands go through the community’s design review. Allow time for it in the schedule. ### How fast can a loan close in The Woodlands? 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. ## Other markets we serve - [Houston, TX](https://houstonfixandfliploans.com/houston-tx/) - [Pasadena, TX](https://houstonfixandfliploans.com/pasadena-tx/) - [Pearland, TX](https://houstonfixandfliploans.com/pearland-tx/) - [Sugar Land, TX](https://houstonfixandfliploans.com/sugar-land-tx/) - [Katy, TX](https://houstonfixandfliploans.com/katy-tx/) - [Conroe, TX](https://houstonfixandfliploans.com/conroe-tx/) - [Baytown, TX](https://houstonfixandfliploans.com/baytown-tx/) - [All service areas](https://houstonfixandfliploans.com/areas-we-serve/) ## Looking at a property in The Woodlands? 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. - Call (954) 598-4564 - Email andrew@optimuscapitalcorp.com - [Get pre-qualified online](https://houstonfixandfliploans.com/get-pre-qualified/) --- Source: https://houstonfixandfliploans.com/conroe-tx/ Title: Conroe, TX Hard Money & Fix and Flip Loans Summary: Fix and flip, DSCR rental and construction loans for Conroe, TX investors. 90% of purchase and 100% of rehab on flips, up to 85% LTV on rentals. [Home](https://houstonfixandfliploans.com/) / [Areas we serve](https://houstonfixandfliploans.com/areas-we-serve/) / Conroe, TX # Hard money and fix and flip loans in Conroe, Texas Loans for new construction, build-to-rent and older homes downtown in Conroe. [Get pre-qualified](https://houstonfixandfliploans.com/get-pre-qualified/) Call (954) 598-4564 ## The Conroe market for investors Conroe is the county seat of Montgomery County and one of the fastest-growing cities in the country, with new subdivisions spreading out from I-45 and Lake Conroe to the west. Investors build new homes to sell or rent, hold newer houses as rentals, and renovate older homes near the historic downtown. ## Areas investors ask about - Downtown Conroe: older homes to renovate - South Conroe and the I-45 corridor: new subdivisions and build-to-rent - Lake Conroe: lake homes and higher-priced rentals ## Plan for these on a Conroe 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. ## Loans available in Conroe Program | Use it for | Top leverage [DSCR rental loans](https://houstonfixandfliploans.com/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](https://houstonfixandfliploans.com/new-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](https://houstonfixandfliploans.com/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](https://houstonfixandfliploans.com/hard-money-loan-programs/#portfolio) | A group of rentals under one note, or multifamily and commercial property | 80% on a portfolio purchase; commercial priced per deal Actual leverage depends on credit, track record, property type and location. Loans start at $75,000. ## Conroe hard money loans: common questions ### Do you finance new construction in Conroe? Yes, at up to 90% of cost for experienced builders, with the lot included. ### Do you lend on lake homes near Lake Conroe? Yes, as investment property. We do not finance a home you will live in. ### How fast can a loan close in Conroe? 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. ## Other markets we serve - [Houston, TX](https://houstonfixandfliploans.com/houston-tx/) - [Pasadena, TX](https://houstonfixandfliploans.com/pasadena-tx/) - [Pearland, TX](https://houstonfixandfliploans.com/pearland-tx/) - [Sugar Land, TX](https://houstonfixandfliploans.com/sugar-land-tx/) - [Katy, TX](https://houstonfixandfliploans.com/katy-tx/) - [The Woodlands, TX](https://houstonfixandfliploans.com/the-woodlands-tx/) - [Baytown, TX](https://houstonfixandfliploans.com/baytown-tx/) - [All service areas](https://houstonfixandfliploans.com/areas-we-serve/) ## Looking at a property in Conroe? 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. - Call (954) 598-4564 - Email andrew@optimuscapitalcorp.com - [Get pre-qualified online](https://houstonfixandfliploans.com/get-pre-qualified/) --- Source: https://houstonfixandfliploans.com/baytown-tx/ Title: Baytown, TX Hard Money & Fix and Flip Loans Summary: Fix and flip, DSCR rental and construction loans for Baytown, TX investors. 90% of purchase and 100% of rehab on flips, up to 85% LTV on rentals. [Home](https://houstonfixandfliploans.com/) / [Areas we serve](https://houstonfixandfliploans.com/areas-we-serve/) / Baytown, TX # Hard money and fix and flip loans in Baytown, Texas Financing for workforce rentals and lower-priced houses to renovate in Baytown. [Get pre-qualified](https://houstonfixandfliploans.com/get-pre-qualified/) Call (954) 598-4564 ## 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](https://houstonfixandfliploans.com/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](https://houstonfixandfliploans.com/new-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](https://houstonfixandfliploans.com/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](https://houstonfixandfliploans.com/hard-money-loan-programs/#portfolio) | A group of rentals under one note, or multifamily and commercial property | 80% on a portfolio purchase; commercial priced per deal Actual leverage depends on credit, track record, property type and location. Loans start at $75,000. ## Baytown hard money loans: common questions ### Do you lend in Baytown? Yes. We finance fix and flips, rentals and construction across Baytown and east Harris County. ### Do you finance rentals for plant workers? Yes. A DSCR loan is approved on the market rent, with no review of your personal income. ### How fast can a loan close in Baytown? 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. ## Other markets we serve - [Houston, TX](https://houstonfixandfliploans.com/houston-tx/) - [Pasadena, TX](https://houstonfixandfliploans.com/pasadena-tx/) - [Pearland, TX](https://houstonfixandfliploans.com/pearland-tx/) - [Sugar Land, TX](https://houstonfixandfliploans.com/sugar-land-tx/) - [Katy, TX](https://houstonfixandfliploans.com/katy-tx/) - [The Woodlands, TX](https://houstonfixandfliploans.com/the-woodlands-tx/) - [Conroe, TX](https://houstonfixandfliploans.com/conroe-tx/) - [All service areas](https://houstonfixandfliploans.com/areas-we-serve/) ## 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. - Call (954) 598-4564 - Email andrew@optimuscapitalcorp.com - [Get pre-qualified online](https://houstonfixandfliploans.com/get-pre-qualified/) --- Source: https://houstonfixandfliploans.com/blog/ Title: Houston Investor Guides & Blog | Houston Fix and Flip Loans Summary: Guides for Houston real estate investors: flips, Texas property taxes and MUDs, flood rules, short-term rental registration and DSCR loans. [Home](https://houstonfixandfliploans.com/) / Blog # Guides for Houston real estate investors Plain-language articles on Houston flips, Texas property taxes, flood rules, short-term rental rules and DSCR loans in Greater Houston. - ## [Cost Segregation for Houston Rental Property: Bigger Deductions in Year One](https://houstonfixandfliploans.com/cost-segregation-houston-rental-property/) How a cost segregation study front-loads depreciation on a Houston-area rental, what 100% bonus depreciation changes, and why Texas makes the benefit simpler. - ## [Fix and Flip Loans in Houston: How to Finance a House Renovation](https://houstonfixandfliploans.com/fix-and-flip-loans-houston-guide/) How a fix and flip loan is sized on a Houston house, what flood history, floodplain rules, foundations, insurance and property taxes do to the budget, and how to plan the exit. - ## [Texas Property Tax for Houston Investors: MUDs, Caps and Protests](https://houstonfixandfliploans.com/texas-property-tax-investors/) How Texas taxes investment property in Greater Houston, why a rental gets no homestead exemption, how MUD taxes and the 20% limit work, and how to protest your value. - ## [Short-Term Rental Rules in Houston: Registration, Taxes and Deed Restrictions](https://houstonfixandfliploans.com/houston-short-term-rental-rules-investors/) How Houston’s short-term rental registration works, what hotel occupancy tax applies, how deed restrictions and HOAs limit short stays, and how we underwrite a Houston rental. - ## [Houston Flood Rules for Real Estate Investors: Floodplains, Elevation and Disclosure](https://houstonfixandfliploans.com/houston-flood-rules-investors/) How floodplain maps, the city’s elevation rule, the 50% substantial improvement rule and Texas flood disclosure laws affect a Houston flip, rental or new build. - ## [DSCR Loans for Houston Rental Property: How They Work](https://houstonfixandfliploans.com/dscr-loans-houston-rental-property/) How a DSCR loan qualifies a Houston rental on its rent, why property tax, MUD tax and flood insurance decide the ratio, and how to make the numbers work. - ## [Hard Money Loan Document Checklist](https://houstonfixandfliploans.com/hard-money-loans-document-list/) What to gather for a rental (DSCR) loan, a new construction loan and a fix and flip loan, divided into one-time documents and documents for each deal. ## Have a Houston deal in mind? Run it by us. 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. - Call (954) 598-4564 - Email andrew@optimuscapitalcorp.com - [Get pre-qualified online](https://houstonfixandfliploans.com/get-pre-qualified/) --- Source: https://houstonfixandfliploans.com/cost-segregation-houston-rental-property/ Title: Cost Segregation for Houston Rentals (2026 Guide) Summary: How a cost segregation study front-loads depreciation on a Houston-area rental, what 100% bonus depreciation changes, and why Texas makes the benefit simpler. [Home](https://houstonfixandfliploans.com/) / [Blog](https://houstonfixandfliploans.com/blog/) / Cost Segregation for Houston Rental Property: Bigger Deductions in Year One # Cost Segregation for Houston Rental Property: Bigger Deductions in Year One By [Andrew Shanti](https://houstonfixandfliploans.com/about-us/#andrew-shanti) · Updated November 6, 2026 A cost segregation study moves part of a rental’s purchase price out of the building, which is written off over decades, and into parts that can be written off much faster. With 100% bonus depreciation back for property acquired after January 19, 2025, most of that faster write-off can land in the first year. For investors holding single-family rentals, duplexes, townhomes and build-to-rent homes across Greater Houston, it can change the after-tax return of a deal. This article explains how it works for investors. It is general information, not tax advice. The rules have conditions, and your CPA should confirm how they apply to you before you act. ## What cost segregation is When you buy a rental, the land is not depreciable, and the building is normally written off in equal amounts over 27.5 years for residential rental property or 39 years for nonresidential property. A cost segregation study, prepared by an engineer or a specialist firm, breaks the purchase price into its parts and assigns each part its proper recovery period. The parts that are not structural can be depreciated far faster than the building. Class | Typical items in a rental | Recovery period Personal property | Appliances, carpet and some flooring, cabinets and fixtures that are not part of the building, window treatments, furniture in a furnished rental | 5 years Land improvements | Driveways, parking, fencing, walkways, patios, landscaping, outdoor lighting, site drainage and utilities | 15 years Building | Foundation, framing, roof, walls, windows, plumbing, electrical, HVAC | 27.5 or 39 years Classifications depend on the facts of each property and are set by the study. ## Why Houston rentals can be good candidates - Build-to-rent and newer homes. Fencing, driveways, landscaping, irrigation, drainage and appliances are short-life parts a study can separate out. - Renovated houses you keep. A renovation adds new appliances, flooring, cabinets and fixtures. - Duplexes to fourplexes. Each unit adds its own kitchen, appliances and finishes. - Land is a smaller share. In much of suburban Houston, land is a modest share of the price, so more of what you pay is depreciable. Inside the Loop, land can be a larger share. ## Houston specifics: flood repairs, build-to-rent and property tax Build-to-rent and newer houses in Katy, Cypress, Pearland and Conroe come with fencing, driveways, landscaping, irrigation and drainage that are 15-year land improvements, plus appliances and some finishes that are 5-year property. A study done when the house is placed in service can separate them from the start. Repairs after a flood are often a mix of deductible repairs and capital improvements, and an insurance payout can change the math. If you replace flooring, drywall, cabinets or systems on a rental after a flood, ask your CPA how to treat the work and whether a partial disposition election applies to what you removed. A cost segregation study is for your income tax only. It does not change the value the appraisal district uses for property tax, which, with MUD taxes and flood insurance, is usually the larger yearly cost of owning a rental in Houston. ## 100% bonus depreciation is back, and permanent The 2025 federal tax law, known as the One Big Beautiful Bill Act, made 100% bonus depreciation permanent for qualified property acquired after January 19, 2025. Qualified property generally means assets with a recovery period of 20 years or less, which includes the 5-year and 15-year parts a study identifies. Those parts can be deducted in full in the year the property is placed in service. The building itself is not eligible. Property acquired before January 20, 2025 and placed in service in 2025 qualifies for 40% bonus depreciation instead. If you signed a binding contract before January 20, 2025, the property may not qualify for 100% even if it closed later. The IRS issued interim guidance on these rules in Notice 2026-11. ## An illustration Purchase price of a rental | $380,000 Allocated to land | $80,000 Building and site improvements | $300,000 Reclassified to 5- and 15-year property (22%, assumed) | $66,000 Deducted in year one with 100% bonus depreciation | $66,000, plus regular depreciation on the remaining $234,000 Federal tax value of the bonus deduction at a 35% bracket | About $23,100 For illustration only. The land allocation, the reclassified share and your tax bracket will differ, and the study sets the actual figures. Without a study, the same property would produce roughly $10,900 of depreciation a year on a 27.5-year schedule. ## Who can use the deduction Depreciation this large usually creates a loss on paper. Rental losses are normally passive, which means they can offset only passive income, and the unused loss carries forward to future years and to the year you sell. Three rules decide whether you can use the loss sooner. - The $25,000 allowance. If you actively participate in managing a long-term rental, up to $25,000 of rental losses a year can offset other income. The allowance phases out as modified adjusted gross income rises from $100,000 to $150,000. - Real estate professional status. If you spend more than 750 hours a year and more than half of your working time in real estate businesses in which you materially participate, rental losses can be nonpassive and offset wages or business income. - Short-term rentals. A short-term rental with an average stay of seven days or less is treated differently under the passive loss rules, and with material participation the loss can be nonpassive. In Houston every short-term rental must register with the city, and many deed restrictions ban short stays, so confirm the address can legally host them. See our guide to [Houston short-term rental rules](https://houstonfixandfliploans.com/houston-short-term-rental-rules-investors/). If none of these applies, the study still works: the deductions shelter the property’s own rental income, then other passive income, and any remainder is used when you sell. ## Flips do not qualify A house bought to renovate and resell is generally treated as inventory, not as a rental, so it is not depreciated at all. Cost segregation applies to property you hold and rent. If you renovate a house and decide to keep it as a rental, a study after the work is done can capture the new appliances, flooring and site work, and a partial disposition election can write off components you removed. See [fix and flip loans](https://houstonfixandfliploans.com/fix-and-flip-loans/) and [DSCR rental loans](https://houstonfixandfliploans.com/dscr-rental-loans/). ## The state return Texas has no personal income tax, so an individual owner has no state return to adjust, and the full benefit is on your federal return. If you own through an LLC or partnership, the Texas franchise tax may apply. It does not follow federal bonus depreciation, but entities with revenue under the no-tax-due threshold owe no franchise tax. If you live in another state, ask your CPA how your home state treats it. ## Timing, cost and the catch on resale - Order the study for the year the property is placed in service, so the deduction is on that year’s return. - Bought a rental in an earlier year? A look-back study can still capture missed depreciation through a change in accounting method on Form 3115, generally without amending old returns. - Weigh the fee against the benefit. Studies on single-family rentals and small multifamily are often priced for smaller properties. Your CPA can tell you whether the deduction justifies the cost. - Depreciation is recaptured when you sell. The depreciation you claim reduces your basis, and much of it is taxed when the property is sold, part of it at ordinary income rates. A 1031 exchange into another property can defer it. ## How this fits your financing A DSCR loan qualifies the property on its rental income, not on your tax return. A large depreciation loss can make a personal return look weak to a conventional lender, but it does not affect the debt service coverage ratio we use. The tax you save can go toward reserves or the down payment on the next rental. See [DSCR rental loans](https://houstonfixandfliploans.com/dscr-rental-loans/), [how DSCR loans work on Houston rentals](https://houstonfixandfliploans.com/dscr-loans-houston-rental-property/) and [construction loans](https://houstonfixandfliploans.com/new-construction-loans/). ## Common questions ### What is cost segregation on a Houston rental property? It is a study that splits a rental’s cost into building, land improvements and personal property such as appliances and flooring. The non-building parts are depreciated over 5 or 15 years instead of 27.5 or 39, which moves deductions into the early years of ownership. ### Does 100% bonus depreciation apply to a rental I buy in 2026? Generally yes. Under the 2025 tax law, 100% bonus depreciation is permanent for qualified property acquired after January 19, 2025, which covers the 5- and 15-year parts identified by a study. The building itself is not eligible. ### Can depreciation from a long-term rental offset my W-2 income? Up to $25,000 a year can, if you actively participate and your modified adjusted gross income is under $100,000, phasing out by $150,000. Real estate professionals can use the full loss. Otherwise it carries forward. ### Can I use cost segregation on a fix and flip? Generally no. A property bought to resell is inventory and is not depreciated. Cost segregation applies to property you hold as a rental. ### Will a big depreciation loss hurt my DSCR loan application? No. A DSCR loan is sized on the property’s rent against its monthly payment. We do not use your tax returns to qualify you. This article is general information and not tax or legal advice. Talk to a CPA who works with rental property owners before you order a study. When you are ready to finance a rental, [get pre-qualified](https://houstonfixandfliploans.com/get-pre-qualified/) or call (954) 598-4564. [Andrew Shanti](https://houstonfixandfliploans.com/about-us/#andrew-shanti) Senior Vice President, Houston Fix and Flip Loans · Optimus Capital Corp Andrew has worked in lending and real estate since 2005 as a principal, executive and investor, across residential and commercial property. He has facilitated more than $25 billion in off-market commercial real estate offers for clients. [More about Andrew](https://houstonfixandfliploans.com/about-us/#andrew-shanti) · (954) 598-4564 · [LinkedIn](https://www.linkedin.com/in/andrew-shanti-6a07631a/) ## Have a Houston deal in mind? Run it by us. 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. - Call (954) 598-4564 - Email andrew@optimuscapitalcorp.com - [Get pre-qualified online](https://houstonfixandfliploans.com/get-pre-qualified/) --- Source: https://houstonfixandfliploans.com/fix-and-flip-loans-houston-guide/ Title: Fix and Flip Loans in Houston: Financing a Renovation Summary: How a fix and flip loan is sized on a Houston house, what flood history, floodplain rules, foundations, insurance and property taxes do to the budget, and [Home](https://houstonfixandfliploans.com/) / [Blog](https://houstonfixandfliploans.com/blog/) / Fix and Flip Loans in Houston: How to Finance a House Renovation # Fix and Flip Loans in Houston: How to Finance a House Renovation By [Andrew Shanti](https://houstonfixandfliploans.com/about-us/#andrew-shanti) · Updated November 6, 2026 Greater Houston has a deep supply of houses built from the 1920s to the 1980s and a large pool of buyers for renovated ones. A flip here usually means new kitchens and baths, new systems, often foundation and roof work, and a house that sells to an owner-occupant. The financing has to cover the purchase and the whole renovation, and the plan has to account for costs that are specific to Houston, flooding above all. ## How the loan is sized A fix and flip loan combines a share of the purchase price with the renovation budget, and the total is capped at a share of the after-repair value (ARV). Purchase price | $260,000 Rehab budget | $85,000 After-repair value | $470,000 90% of purchase | $234,000 100% of rehab | $85,000 Loan | $319,000 75% of ARV ceiling | $352,500 Cash to close, before costs | $26,000 For illustration only. Top leverage applies at a 720+ credit score. The rehab money is not paid at closing. It is held back and released in draws as each stage of work is inspected and completed, so you or your contractor need enough cash to start each stage. ## Costs that are specific to Houston - Flood history and floodplain rules. Check whether the house has flooded and whether it sits in a floodplain. Inside the city’s 100-year and 500-year floodplains, a substantial improvement means the house must meet the elevation rule, 2 feet above the 500-year flood level. See our guide to [Houston flood rules for investors](https://houstonfixandfliploans.com/houston-flood-rules-investors/). - Foundations. Clay soil swells and shrinks with moisture, and foundation movement is common in older slab and pier-and-beam houses. A foundation inspection belongs in your due diligence. - Property tax while you hold. Combined rates are often 2% to 2.5% of value, more inside a MUD, and an investment property gets no homestead exemption. Carry the monthly tax in your holding costs. - Low closing costs. Texas has no transfer tax and no mortgage recording tax. Title insurance is priced at rates set by the state, and closings run through a title company. ## Permits, deed restrictions and historic districts Houston has no zoning, but many neighborhoods have deed restrictions that limit what you can build, and the city enforces them. Permits for work inside the city go through the Houston Permitting Center. In historic districts such as the Heights, Freedmen’s Town and Old Sixth Ward, exterior work needs a certificate of appropriateness. ## The exit Most flips end in a sale to an owner-occupant, so your after-repair value should come from recent sales of renovated homes nearby. Buyers will see the seller’s disclosure, including any past flooding, and that affects the price. If the market slows, a [DSCR rental loan](https://houstonfixandfliploans.com/dscr-rental-loans/) can replace the flip loan and turn the house into a long-term rental, with a cash-out refinance at up to 80% loan-to-value. ## Common questions ### How much of a Houston flip will you finance? Up to 90% of the purchase and 100% of the rehab at a 720+ credit score, within 70 to 75% of the after-repair value. ### Will you finance a house that has flooded? Often, yes, if the repairs were done properly and the after-repair value reflects the flood history a buyer will see. Tell us up front. ### Is there a transfer tax in Texas? No. Texas has no transfer tax and no mortgage recording tax. ### How long a term should I choose? Long enough to cover permits and the work, with a cushion. Our terms run 6 to 24 months with no prepayment penalty. [Andrew Shanti](https://houstonfixandfliploans.com/about-us/#andrew-shanti) Senior Vice President, Houston Fix and Flip Loans · Optimus Capital Corp Andrew has worked in lending and real estate since 2005 as a principal, executive and investor, across residential and commercial property. He has facilitated more than $25 billion in off-market commercial real estate offers for clients. [More about Andrew](https://houstonfixandfliploans.com/about-us/#andrew-shanti) · (954) 598-4564 · [LinkedIn](https://www.linkedin.com/in/andrew-shanti-6a07631a/) ## Have a Houston deal in mind? Run it by us. 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. - Call (954) 598-4564 - Email andrew@optimuscapitalcorp.com - [Get pre-qualified online](https://houstonfixandfliploans.com/get-pre-qualified/) --- Source: https://houstonfixandfliploans.com/texas-property-tax-investors/ Title: Texas Property Tax for Houston Investors (2026 Guide) Summary: How Texas taxes investment property in Greater Houston, why a rental gets no homestead exemption, how MUD taxes and the 20% limit work, and how to protest [Home](https://houstonfixandfliploans.com/) / [Blog](https://houstonfixandfliploans.com/blog/) / Texas Property Tax for Houston Investors: MUDs, Caps and Protests # Texas Property Tax for Houston Investors: MUDs, Caps and Protests By [Andrew Shanti](https://houstonfixandfliploans.com/about-us/#andrew-shanti) · Updated November 6, 2026 Texas has no state income tax, and local governments fund themselves largely with property tax. For Houston investors that makes property tax one of the biggest costs of owning a rental, and the number most likely to decide whether a deal works. ## How the bill is built - The appraisal district sets the value. The Harris Central Appraisal District, Fort Bend Central Appraisal District, Montgomery Central Appraisal District and Brazoria Central Appraisal District value property in their counties each year. - Several local governments set rates. The county, the city, the school district, the community college, the flood control district and other districts each levy a rate. Combined, they are often 2% to 2.5% of value in Harris County. - No homestead exemption on a rental. A home you live in gets a homestead exemption and a 10% cap on yearly increases in taxable value. An investment property gets neither. ## Municipal utility districts Much of suburban Houston was built with municipal utility districts, which borrow to pay for water, sewer and drainage and repay the debt with their own property tax. In newer subdivisions in Katy, Cypress, Pearland and Conroe, the MUD rate can push the total above 3% of value. Check the MUD rate for the exact address; it is on the tax statement and the seller’s disclosure. ## The 20% limit on non-homestead property For the 2024, 2025 and 2026 tax years, Texas limits the yearly increase in taxable value of non-homestead real property worth $5 million or less to 20%, plus the value of new improvements. The owner must have held the property for a full calendar year, and the limit ends when the property is sold. A buyer is taxed on full market value the next year, so do not underwrite on the seller’s tax bill. ## Protesting your value If the appraisal district’s value is too high, you can protest it. The deadline is generally May 15 or 30 days after the appraisal notice is delivered, whichever is later. Recent purchase prices, repair estimates, flood damage and comparable sales are the usual evidence, and many investors use a property tax consultant. ## How it affects a loan Item | Monthly Rent | $2,300 Principal and interest | $1,350 Property tax at 2.4% on $300,000 | $600 Insurance, including flood | $260 Total payment | $2,210 DSCR | 1.04 For illustration only. Taxes alone can be more than a quarter of the payment, which is why we use full market value, not a homestead or capped figure, when we size a [DSCR rental loan](https://houstonfixandfliploans.com/dscr-rental-loans/). ## Common questions ### Do investment properties get a homestead exemption in Texas? No. The homestead exemption is only for a home you own and live in. ### What is a MUD tax? A property tax levied by a municipal utility district to repay the cost of water, sewer and drainage in the subdivision. It is added to the county, city and school taxes. ### Can I protest my property value in Harris County? Yes. File with the Harris Central Appraisal District by the deadline on your notice, generally May 15 or 30 days after the notice, whichever is later. [Andrew Shanti](https://houstonfixandfliploans.com/about-us/#andrew-shanti) Senior Vice President, Houston Fix and Flip Loans · Optimus Capital Corp Andrew has worked in lending and real estate since 2005 as a principal, executive and investor, across residential and commercial property. He has facilitated more than $25 billion in off-market commercial real estate offers for clients. [More about Andrew](https://houstonfixandfliploans.com/about-us/#andrew-shanti) · (954) 598-4564 · [LinkedIn](https://www.linkedin.com/in/andrew-shanti-6a07631a/) ## Have a Houston deal in mind? Run it by us. 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. - Call (954) 598-4564 - Email andrew@optimuscapitalcorp.com - [Get pre-qualified online](https://houstonfixandfliploans.com/get-pre-qualified/) --- Source: https://houstonfixandfliploans.com/houston-short-term-rental-rules-investors/ Title: Houston Short-Term Rental Rules for Investors (2026) Summary: How Houston’s short-term rental registration works, what hotel occupancy tax applies, how deed restrictions and HOAs limit short stays, and how we underwrite [Home](https://houstonfixandfliploans.com/) / [Blog](https://houstonfixandfliploans.com/blog/) / Short-Term Rental Rules in Houston: Registration, Taxes and Deed Restrictions # Short-Term Rental Rules in Houston: Registration, Taxes and Deed Restrictions By [Andrew Shanti](https://houstonfixandfliploans.com/about-us/#andrew-shanti) · Updated November 6, 2026 Houston has no zoning, so it does not ban short-term rentals by neighborhood the way many cities do. Since January 1, 2026, though, every short-term rental in the city must be registered, and many subdivisions restrict short stays on their own. Before you buy a house to run on Airbnb or Vrbo, check the rules for that exact address. ## City registration - Who must register. Anyone who operates or advertises a short-term rental inside the City of Houston. - The fee. A certificate of registration costs $275 and must be renewed every year. - Rules that come with it. Operators must follow the city’s safety and conduct rules, and the listing cannot be advertised as an event space. - Enforcement. Violations can bring fines of up to $500 a day and the loss of the registration. ## Hotel occupancy tax Short stays in Texas owe state hotel occupancy tax, and Houston operators must also register for and pay the city’s hotel occupancy tax. Some platforms collect part of it for you, but the operator is responsible for the rest. ## Deed restrictions and HOAs Many Houston neighborhoods and nearly all master-planned communities have deed restrictions, and many of them bar rentals shorter than 30 days or limit leasing. Texas courts have enforced such restrictions when they are clear. Read the restrictions and the association rules before you make an offer. ## The suburbs Cities outside Houston, such as Sugar Land, Katy, League City and Galveston, set their own rules, from registration and permits to limits in certain zones. Check with the city where the property sits. ## How we underwrite Because deed restrictions and city rules vary so much, we generally size a [DSCR rental loan](https://houstonfixandfliploans.com/dscr-rental-loans/) on long-term market rent. A deal that only works as a short-term rental carries extra risk. ## Common questions ### Are short-term rentals legal in Houston? Yes, where deed restrictions allow them, but every short-term rental in the city must be registered with the city each year and pay hotel occupancy tax. ### How much does Houston’s registration cost? $275 a year for each certificate of registration. ### Will you count short-term rental income for a DSCR loan? Generally we use long-term rent. Ask us about a specific address. [Andrew Shanti](https://houstonfixandfliploans.com/about-us/#andrew-shanti) Senior Vice President, Houston Fix and Flip Loans · Optimus Capital Corp Andrew has worked in lending and real estate since 2005 as a principal, executive and investor, across residential and commercial property. He has facilitated more than $25 billion in off-market commercial real estate offers for clients. [More about Andrew](https://houstonfixandfliploans.com/about-us/#andrew-shanti) · (954) 598-4564 · [LinkedIn](https://www.linkedin.com/in/andrew-shanti-6a07631a/) ## Have a Houston deal in mind? Run it by us. 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. - Call (954) 598-4564 - Email andrew@optimuscapitalcorp.com - [Get pre-qualified online](https://houstonfixandfliploans.com/get-pre-qualified/) --- Source: https://houstonfixandfliploans.com/houston-flood-rules-investors/ Title: Houston Flood Rules for Investors: Buying, Renovating, Renting Summary: How floodplain maps, the city’s elevation rule, the 50% substantial improvement rule and Texas flood disclosure laws affect a Houston flip, rental or new build. [Home](https://houstonfixandfliploans.com/) / [Blog](https://houstonfixandfliploans.com/blog/) / Houston Flood Rules for Real Estate Investors: Floodplains, Elevation and Disclosure # Houston Flood Rules for Real Estate Investors: Floodplains, Elevation and Disclosure By [Andrew Shanti](https://houstonfixandfliploans.com/about-us/#andrew-shanti) · Updated November 6, 2026 Flooding is the biggest physical risk in Houston. Hurricane Harvey in 2017 flooded more than 150,000 homes in Harris County, and the rules that followed changed how investors buy, renovate, build and rent. Understanding them before you make an offer protects the budget and the exit. ## Know the maps - The 100-year floodplain. FEMA’s Special Flood Hazard Area, with a 1% chance of flooding in any year. A lender requires flood insurance on a property here. - The 500-year floodplain. A 0.2% yearly chance. Many homes that flooded in Harvey sit here or outside the mapped floodplain altogether. - New maps. Harris County’s flood maps are being updated with newer rainfall data, and more properties may be mapped into the floodplain. Check the current and preliminary maps. ## The city’s elevation rule Since September 2018, new homes in the City of Houston inside the 100-year and 500-year floodplains must be built with the lowest floor 2 feet above the 500-year flood elevation. The rule also applies to substantial improvements, which affects how far you can take a renovation without raising the house. ## The 50% substantial improvement rule In a floodplain, if the cost of a renovation, or of repairing flood damage, reaches 50% of the building’s market value, the house must be brought into compliance with current flood rules, which can mean elevating it or rebuilding. Get a realistic estimate and talk to the floodplain office before you set the scope. ## Disclosure rules - Sellers. The Texas seller’s disclosure asks whether the property is in a floodplain, has flooded, has flood insurance and has received flood claims or federal aid. Read it before you buy, and expect your buyer to read yours. - Landlords. Every residential lease in Texas must state whether the landlord knows the property is in a 100-year floodplain and whether it has flooded in the past five years. ## Insurance Flood insurance is a separate policy from homeowners or landlord insurance, through the National Flood Insurance Program or a private carrier. Premiums now reflect each property’s own risk, so get a quote for the exact address before you make an offer. There is usually a 30-day wait before a new NFIP policy takes effect. ## How it affects financing We lend on properties in the floodplain and on houses that have flooded and been repaired. The flood premium counts in the payment on a [DSCR rental loan](https://houstonfixandfliploans.com/dscr-rental-loans/), and for a [fix and flip](https://houstonfixandfliploans.com/fix-and-flip-loans/) or a [new build](https://houstonfixandfliploans.com/new-construction-loans/), the elevation rules shape the budget and the after-repair value. ## Common questions ### Will you lend on a Houston house that flooded in Harvey? Yes, if it was repaired properly and the numbers account for flood insurance and the disclosure. ### How high must a new Houston home be built in the floodplain? Inside the city’s 100-year and 500-year floodplains, the lowest floor must be 2 feet above the 500-year flood elevation. ### Do I have to tell tenants about flood risk? Yes. Texas leases must disclose whether the property is in a 100-year floodplain and whether it has flooded in the past five years. [Andrew Shanti](https://houstonfixandfliploans.com/about-us/#andrew-shanti) Senior Vice President, Houston Fix and Flip Loans · Optimus Capital Corp Andrew has worked in lending and real estate since 2005 as a principal, executive and investor, across residential and commercial property. He has facilitated more than $25 billion in off-market commercial real estate offers for clients. [More about Andrew](https://houstonfixandfliploans.com/about-us/#andrew-shanti) · (954) 598-4564 · [LinkedIn](https://www.linkedin.com/in/andrew-shanti-6a07631a/) ## Have a Houston deal in mind? Run it by us. 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. - Call (954) 598-4564 - Email andrew@optimuscapitalcorp.com - [Get pre-qualified online](https://houstonfixandfliploans.com/get-pre-qualified/) --- Source: https://houstonfixandfliploans.com/dscr-loans-houston-rental-property/ Title: DSCR Loans for Houston Rental Property: How They Work Summary: How a DSCR loan qualifies a Houston rental on its rent, why property tax, MUD tax and flood insurance decide the ratio, and how to make the numbers work. [Home](https://houstonfixandfliploans.com/) / [Blog](https://houstonfixandfliploans.com/blog/) / DSCR Loans for Houston Rental Property: How They Work # DSCR Loans for Houston Rental Property: How They Work By [Andrew Shanti](https://houstonfixandfliploans.com/about-us/#andrew-shanti) · Updated November 6, 2026 A DSCR loan qualifies a rental on whether its rent covers the payment, not on your personal income. For investors with several properties, self-employed income or an LLC, that is often the simplest way to finance a rental in Greater Houston. ## The ratio DSCR = monthly rent ÷ monthly payment, where the payment includes principal, interest, property taxes, insurance and homeowners association dues. We prefer 1.0 or higher. Rent | Payment | DSCR $2,730 | $2,100 | 1.30 $2,100 | $2,100 | 1.00 $1,890 | $2,100 | 0.90 Illustrative figures. ## What decides the ratio in Houston - Property tax. Use full market value without a homestead exemption, and add any MUD tax. See our guide to [Texas property tax for Houston investors](https://houstonfixandfliploans.com/texas-property-tax-investors/). - Insurance. Wind, hail and flood coverage are expensive. Get quotes for the exact address early. See our guide to [Houston flood rules](https://houstonfixandfliploans.com/houston-flood-rules-investors/). - HOA dues. Master-planned communities have them, and some restrict leasing. - Long-term rent. Short-term rentals need city registration and are barred by many deed restrictions, so we use leases or market rent. ## Ways to make the numbers work - A larger down payment lowers the payment. - An interest-only period lowers the payment in the early years, and you can qualify on the interest-only payment. - A 5-year prepayment penalty usually prices lower than a 3-year one. - A property outside the floodplain, or one elevated above it, usually costs less to insure. Terms are on the [DSCR rental loans](https://houstonfixandfliploans.com/dscr-rental-loans/) page. [Andrew Shanti](https://houstonfixandfliploans.com/about-us/#andrew-shanti) Senior Vice President, Houston Fix and Flip Loans · Optimus Capital Corp Andrew has worked in lending and real estate since 2005 as a principal, executive and investor, across residential and commercial property. He has facilitated more than $25 billion in off-market commercial real estate offers for clients. [More about Andrew](https://houstonfixandfliploans.com/about-us/#andrew-shanti) · (954) 598-4564 · [LinkedIn](https://www.linkedin.com/in/andrew-shanti-6a07631a/) ## Have a Houston deal in mind? Run it by us. 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. - Call (954) 598-4564 - Email andrew@optimuscapitalcorp.com - [Get pre-qualified online](https://houstonfixandfliploans.com/get-pre-qualified/) --- Source: https://houstonfixandfliploans.com/hard-money-loans-document-list/ Title: Hard Money Loan Document Checklist | Houston Investors Summary: What to gather for a rental (DSCR) loan, a new construction loan and a fix and flip loan, divided into one-time documents and documents for each deal. [Home](https://houstonfixandfliploans.com/) / [Blog](https://houstonfixandfliploans.com/blog/) / Hard Money Loan Document Checklist # Hard Money Loan Document Checklist By [Andrew Shanti](https://houstonfixandfliploans.com/about-us/#andrew-shanti) · Updated November 6, 2026 Loans close faster when the paperwork is ready before it is asked for. Below is what we need for each type of loan. A business-purpose loan can close in your own name or in the name of an entity. Many investors use an LLC for liability protection, and if you do, the entity documents apply. ## Rental (DSCR) loans ### Once - Driver’s license - LLC certificate of formation, EIN letter and signed company agreement - Certificate of account status or good standing, if the LLC is more than a year old - Voided check for automatic payments - Two months of bank statements. We look for roughly six months of liquidity ### Each deal - Loan application - Signed purchase contract, or the original settlement statement for a refinance - The lease, for a rented property - HOA dues and any special assessments - Insurance agent and title company contacts, plus a flood insurance quote if the property is in a flood zone - Someone who can let the appraiser into the property - The appraisal report ## New construction loans ### Once - Driver’s license - LLC certificate of formation, EIN letter and signed company agreement - Certificate of account status or good standing, if the LLC is more than a year old - A schedule of your projects from the last 2 years with settlement statements - Voided check for automatic payments - Personal financial statement - Two months of bank statements showing reserves for interest, closing costs and part of the budget ### Each deal - Loan application - A line-item construction budget with a specific scope of work - Plans, drawings, any soil report, a survey with the flood elevation, and permit status - The general contractor’s details and insurance - A list of the contractor’s recent new builds - Insurance agent and title company contacts, plus a flood insurance quote if the property is in a flood zone - Someone who can give the appraiser access to the site ## Fix and flip loans ### Once - Driver’s license - LLC certificate of formation - IRS EIN letter - Company agreement signed by every member, with ownership percentages - Certificate of account status or good standing, if the LLC is more than a year old - Voided check for automatic payments - Experienced investors: a schedule of your projects from the last 3 years and the settlement statements for each purchase and sale. For a property you kept, the statement showing the refinance into permanent financing ### Each deal - Loan application - A line-item rehab budget with a specific scope of work. Write “install 12 pressed piers and replace roof”, not “foundation and roof”. Draws are released against this budget - Signed purchase contract, or the original settlement statement for a refinance - Foundation inspection or engineer’s report, if you have one - The seller’s disclosure, including any flood history - Insurance agent’s name, phone and email - Title company’s name, phone and email Not sure about an item? Call (954) 598-4564. [Andrew Shanti](https://houstonfixandfliploans.com/about-us/#andrew-shanti) Senior Vice President, Houston Fix and Flip Loans · Optimus Capital Corp Andrew has worked in lending and real estate since 2005 as a principal, executive and investor, across residential and commercial property. He has facilitated more than $25 billion in off-market commercial real estate offers for clients. [More about Andrew](https://houstonfixandfliploans.com/about-us/#andrew-shanti) · (954) 598-4564 · [LinkedIn](https://www.linkedin.com/in/andrew-shanti-6a07631a/) ## Have a Houston deal in mind? Run it by us. 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. - Call (954) 598-4564 - Email andrew@optimuscapitalcorp.com - [Get pre-qualified online](https://houstonfixandfliploans.com/get-pre-qualified/)