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Hard money and fix and flip loans in Pearland, Texas
Loans for newer homes and townhomes to rent, renovations and new construction in Pearland.
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 | 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 |
Pearland hard money loans: common questions
Yes, with DSCR rental loans at up to 85% loan-to-value on a purchase.
Yes, at up to 90% of cost for experienced builders, with the lot included.
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 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.