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Hard money and fix and flip loans in Pasadena, Texas
Financing for lower-priced houses to renovate and long-term rentals in Pasadena.
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 | Purchase or refinance of single-family rentals, duplexes, townhomes and small multifamily | 85% loan-to-value to buy, 80% on a cash-out refinance |
| Ground-up construction loans | Building a home, a duplex, a build-to-rent home or a small apartment building, lot included | 90% of cost for experienced builders, up to 70 to 75% of the finished value |
| Fix and flip loans | Purchase plus renovation of a property you intend to sell | 90% of the purchase price and 100% of the rehab, up to 70 to 75% of after-repair value |
| Portfolio and commercial loans | A group of rentals under one note, or multifamily and commercial property | 80% on a portfolio purchase; commercial priced per deal |
Pasadena hard money loans: common questions
Yes. We finance fix and flips, rentals and construction across Pasadena and Harris County.
Yes. A DSCR loan is approved on whether the rent covers the payment, including taxes and insurance.
Fix and flip loans average up to 21 days and can close in about 7 days when title and insurance are ready. Rental and DSCR loans take about 30 days, appraisal included. Closings are handled by a Texas title company.
Looking at a property in 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.